Written Commentary
COPPER
The overnight declined in copper prices should be extremely discouraging to the bull camp as Chinese import news overnight was very bullish. In fact, Chinese January through September copper imports, were 4.99 million tons versus only 3.5 million tons a year earlier. Even September copper imports remained strong with 722,450 tons flowing into China versus only 668,486 tons in August.
GOLD / SILVER
While the gold market has shown some corrective action from the previous 2 days highs, tested and rejected the 21-day moving average just below the early trade today at $1913.40, in order to maintain the September through October uptrend pattern likely requires a respect of a significant uptrend channel support line at $1891.95. As for the silver market the charts continue to be more constructive than in gold, with a rejection of a test of the 21-day moving average at $24.718 with the market also catching some longer-term fundamental support from a prediction overnight that global silver supply will be below 1 billion ounces
PALLADIUM / PLATINUM
Despite very positive Chinese import/export news, surging Chinese auto sales and a jump in trading volume on the new high upside breakout last week, the palladium market looks and feels vulnerable. Like the palladium market, the platinum market showed a noted reversal following last week’s impressive 3-day rally with the market apparently not bolstered by the 15-month high in aluminum prices yesterday and a very strong surge in Chinese copper imports for September overnight.
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