GOLD / SILVER
While the gains in the gold market yesterday were not significant, the gains were forged against headwinds of a stronger dollar, weakness in other precious metals markets and in the face of a lack of definitive anxiety flowing from the equity markets. In other words, the bull camp in gold earned some respect in the marketplace yesterday, but we continue see a market lacking a strong fundamental foundation. The silver trade is not overly sensitive to bullish news, as Commerzbank projected silver prices to rise to $28.00 per ounce by the end of next year.
PLATINUM / PALLADIUM
It appears as if the platinum market has temporarily lost upside momentum, but we expect the trade to be build a consolidation above $1,014 and that could become a launching point for the next rally. Given fresh chart damage yesterday in March Palladium (a dip below the 100-day moving average yesterday and again this morning) a return to last week’s spike low could be in the offing, especially if macro-economic slowing fears surface today.
With the rejection of yesterday’s 4-day low, renewed hope for US stimulus and a bullish copper price forecast from CITI, the bull camp has regained its footing today. However, in retrospect, the March copper contract appeared to run out of fuel temporarily on its initial rise above $3.50 last week, and the net spec and fund long in copper (as of December 1st) was likely 30,000 contracts above the record long level seen at the beginning of November and the correction this week might not have been through enough to have balanced the market.
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