Written Commentary
GOLD & SILVER
With US recession fears flaring, the opening of Shanghai has been lost in the precious metal shuffle. However, with the dollar index regaining its footing after an extremely poor close last week, gold and silver do not have fresh bullish fundamental support to start the holiday shortened week. While it is unclear if the Biden/Powell meeting today will yield any fresh news dialogue from that meeting the outcome is more likely to be bearish toward gold and silver than supportive.
PALLADIUM & PLATINUM
With 3rd straight higher high and the highest price since May 18th, the palladium market starts the holiday shortened week on positive footing. Unfortunately for the bull camp the rally in palladium this morning is not substantiated by bullish fundamentals. On the other hand, the net spec and fund short in palladium remains near record levels and could be a source of stop loss buying if the next key pivot point up at $2072 is regained. Perhaps, palladium and platinum are benefiting from combination of strength in oil and the reopening of Shanghai. Like palladium, the platinum market is tracking higher with a 4-day high but is not underpinned by visible bullish fundamental developments.
COPPER
While July copper failed to hold an upside breakout overnight, prices are at the highest level since May 5th and that is likely the result of the opening of Shanghai. Obviously, reopening of Shanghai and reports of low infection counts from Beijing improve the copper demand outlook to start the new week. In fact, Chinese import copper premiums increased overnight, and Chinese refined copper exports reached the highest level since April 2017.
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