Written Commentary
GOLD / SILVER
Seeing gold forge a higher high overnight is not surprising considering that US treasury yields have fallen sharply again overnight. However, it is likely that a significant washout in crude oil prices, a 5th straight day of ETF gold liquidation and initial weakness in platinum, palladium, and copper prices is holding back gains in gold and silver.
PALLADIUM / PLATINUM
While the palladium market appears to have lost upside momentum over the prior 36 hours of trade, investors have shown interest in palladium ETFs with 4,332 ounces purchased yesterday, bringing the year-to-date gain in ETF holdings up to 11. Not surprisingly, the platinum market has shown little in the way of definitive direction since the large washout in the middle of June, as physical demand is not expected to ramp up until the auto sector chip shortage is ended and opening up of Europe sparks an expansion in diesel vehicles sales.
COPPER
It would appear as if the September copper contract has found value around the $4.2340 area, as the market discounted a temporary surge in the US dollar and copper is holding up relatively well in the face of news that the Chinese National Food and Strategic Reserves administration indicated that more releases of copper, aluminum, and zinc will be seen to alleviate price pressures in those materials.
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