GOLD / SILVER
With fresh hope for a stimulus deal fostered by the Speaker of the House in a statement over the weekend, positive vaccine news from the UK and noted weakness in the dollar to start today, the path of least resistance in the gold and silver markets is pointing upward. Furthermore, gold and silver should draft support from favorable Chinese economic news which showed better-than-expected retail sales and an overall growth level commensurate with pre-Covid-19 levels.
PALLADIUM / PLATINUM
While the charts in the palladium market favor of the bear camp to start news from China should help firm up support above last week’s consolidation lows in December palladium around the $2,327 level. Like the palladium market, the platinum market also remains within a bearish chart set up with the market showing very little reaction recently to positive global data points and to positive equity market action. However, it would appear as if platinum is drafting some lift from the risk on environment in place this morning and the market should also draft support from a bullish “Citi” price forecast for platinum for $1100 by the end of next year.
All things considered the bull camp in copper should be disappointed in the early action today as a sweep of positive fundamental headlines should have boosted demand orientated buying for copper this morning. In fact, very supportive Chinese economic data (particularly from industrial production and retail sales) should have stoked buying enough to put prices up to the highest level since mid-September.
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