GOLD / SILVER
We see the gold and silver markets vulnerable to lower action with the dollar seemingly poised to forge a minor upside breakout, money continuing to flee from gold ETF holdings and a US treasury International capital flow report yesterday afternoon showing Japan and China pouring significant capital into US treasuries. Like the gold market, the silver market has an upward track on its charts, but gains have been measured and hard-fought of late.
The charts in the PGM markets clearly favor the bull camp, with the palladium market reaching the highest level since the major washout down day on February 26th. With the palladium market clearly outperforming the platinum market on the charts yesterday, it appears as if the trade is embracing the prospect of an improvement in global auto sales and prices should see additional lift from the looming US Federal Reserve meeting.
While the copper market did manage to forge an 8-day high yesterday, the magnitude of the rally was disappointing considering the very favorable Chinese economic data presented to the market. In addition to that disappointing chart action yesterday, the copper market is confronted with a very significant jump in daily LME copper warehouse stocks of 11,250 tons this morning which in turn is the 9th daily increase in stocks over the last 11 sessions.
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