Written Commentary
PALLADIUM / PLATINUM
Very favorable chart action in December palladium to start the week gives the bull camp an edge with yesterday’s price reaching up to the highest level since September 21st and highlighting the markets need for risk on conditions to boost physical demand expectations. platinum’s outside day higher yesterday came as the market traded back above its 100-day and 200-day moving averages which should lead to fresh longer term technically-based buying.
GOLD / SILVER
While US equities are not showing positive traction early on and US scheduled data today will be scarce gold and silver prices have remained in positive standing on their charts. Furthermore, the Dollar appears to be entrenching in a downward motion and we expect both gold and silver to continue to see speculative buying on the idea that ultimately a US stimulus package will be agreed upon. Internationally, gold and silver should continue to draft from what has been favorable Asian (non-Chinese) economic reports, upbeat European reports and perhaps most importantly news overnight that high-frequency data for India might be understating the pace of the recovery in that country.
COPPER
After some significant volatility in global exchange warehouse stocks over the last two weeks it is possible that London has settled back into a pattern of declines with inventories now likely to fall back toward multi-decade lows in the weeks ahead. Supporting prices off last week’s low is news that several mines in South America continue to see coronavirus infections hobbling production with some mines reporting infections at management levels which are disrupting logistics and future development of new mines.
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