Written Commentary
GOLD / SILVER
Gold and silver markets continue to hold near the early November high despite a loss of momentum over the prior 2 trading sessions. Nonetheless, the December gold contract remains right on 5-month highs with the gains of late confirmed by surging open interest. The silver market has very bullish charts and volume and open interest picked up last week on the rally to confirm the upside extension.
PALLADIUM / PLATINUM
The palladium market appears to be poised to play catch up with the platinum market and to a lesser degree to the gains in gold. However, the Chinese industrial production reading for October was positive with slightly better than expected results and that should support both palladium and platinum. After leading the PGM markets on the upside at the end of October, the platinum market appears to have settled into a secondary position following palladium. Unfortunately for the bull camp, infection issues in Europe are concerning for platinum and for diesel catalyst platinum demand.
COPPER
All things considered the December copper contract finished last week impressive with the highest close since October 26th. Not surprisingly the copper market has extended on the upside this morning in the wake of a Goldman forecast predicting copper prices of $12,000 to $13,000 in London (current London $9,700) in the event exchange supply continues to tighten.
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