GOLD / SILVER
Seeing the gold market hold most yesterday’s gains should embolden the bulls, especially with tailwinds from the beginning of an important Indian festival directly ahead. While gold and silver have not displayed frequent correlation with inflation headlines, both markets seemed to rise on Monday following a significant jump in many base line type inflationary commodities like Oats, Wheat, and cotton.
PALLADIUM / PLATINUM
The palladium market surprised the trade with an upside breakout and a 5-day high to start the trading week, but the market was unable to hold all those gains this morning. However, some traders will point out that the rally yesterday did reverse a 3-week-old downtrend channel and that palladium seemed to be catching a lift from an inflation wave of gains led by gold. Even the beleaguered platinum market forged a big range up move yesterday.
The charts in copper remain bearish with a recent pattern of lower highs and lower lows likely to be extended in the coming sessions. However, the market should see significant support from another large LME copper stock daily drawdown of 7,375 tons overnight. Unfortunately for the bull camp, aluminum, iron ore, and other key bellwether industrial prices have declined overnight.
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