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Corrective Action to Extend in Metals


Unfortunately for the bull camp, gold and silver prices are under pressure again this morning despite a significant downside reversal in the dollar. However, most physical commodities are tracking lower today with the global economic outlook in question. On the other hand, gold ETF holdings yesterday saw an inflow of 261,061 ounces and are now 9.3% higher year-to-date.


While the PGM markets are justifiably being dragged lower by weakness in gold and silver prices, bullish sentiment is also punctured by the latest upside breakouts in US treasury yields, and by a rather sweeping decline in oil prices. However, the palladium market should draft ongoing support from the launch of the Russian offensive, as that action extends sanctions even further into the foreseeable future. However, the platinum market severely damaged its charts yesterday with a multi-week high rejected and a very poor close yesterday.


Clearly, a wave of very significant inflows to LME copper warehouse stocks has deflated talk of global copper supply tightness. In fact, LME copper warehouse stocks have increased in 22 of the last 31 sessions! On the other hand, LME stocks remain near the lower end of a 15-year-old range and are still 34,000 tonnes below year ago levels.

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