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Bears Start With Narrow Edge


With a lower high early today extending a recent pattern of lower highs in June Gold the bear camp starts the Tuesday trade with an edge. However, the direction of gold and silver prices is difficult to ascertain as inflation expectations are being countered by hawkish US Federal Reserve dialogue. Therefore, today’s FOMC meeting minutes release should have a negative impact on gold and silver.


While the palladium market outperformed the rest of the precious metal market yesterday, upcoming sanctions might include official attempts to lockdown metals flowing from Russia. Unfortunately for the bull camp, palladium ETFs are not seeing inflows and that in turn suggests speculative buying of palladium is limited to futures.


In addition to reduced production from major Chilean mines in the latest monthly production data, the copper market is also drafting support from the potential of sanctions specifically blocking Russian metal outflows. Unfortunately for the bull camp LME copper warehouse stocks continue to build. In retrospect, the copper market fared impressively yesterday in the face of a significant rally in the dollar and weakness in other metal markets like silver and platinum.

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