GOLD & SILVER
With the gold and silver markets overbought with upside extensions forged to start today, it appears that the dollar has prompted a reversal and perhaps a measure of long liquidation or stop loss selling. However, the dollar has not forged a significant upside in morning trade action and the index could pull the index back into the prior two days trading range. Overnight according to Reuters South African November gold output declined by 4.6% on a year over year basis while South African October gold output was revised downward to a decline of 6.6% year-over-year.
PALLADIUM & PLATINUM
The PGM markets should draft support against the risk-off vibe this morning because of a 22% November year-over-year decline in South African PGM production! Unfortunately for the bear camp, the Palladium charts are negative to start the holiday shortened week with a 7-day low forged and the lowest trade since January 5th. The platinum market has another negative from a 1,737-ounce outflow from platinum ETF holdings.
With the copper market early today not forging a new high for the move on its initial attempt to rally and recoiling from that rally the market has the feel of a temporary top. Like the precious metal markets, the copper market saw a contraction in Chinese retail sales as more important than better than expected Chinese Industrial production and GDP data.
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