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Corrective Action Not A Trend Change Yet


What a difference 24 hours makes as the gold market this morning is reportedly trading lower off less concern for the omicron breakout. Yesterday, gold and silver prices were lifted off a decline in omicron uncertainty. However, a pandemic record daily US infection count of 441,000 from Monday seriously challenges the declining omicron uncertainty argument.


While the palladium market forged a significant $136 trading range on Tuesday and finished near its high of the day, prices have fallen back this morning within striking distance of a key pivot point of $1946.50. Perhaps the trade sensed continued deflation of omicron fears and or the PGM markets yesterday saw the prospect of Russian interference in Ukraine as a high probability.


Like other metals and commodities, copper ranged up yesterday, reversed into the close and extended on the downside this morning in a fashion that suggests the $4.50 level is an expensive level. In a longer-term negative psychological impact, the Chinese Industry Ministry has called for expanded domestic production of copper and iron ore. Apparently, copper joined the parade of commodities temporarily benefiting from market views that the omicron threat was receding.

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