Written Commentary
GOLD / SILVER
While December gold has shown a positive trade on the charts early today there does not appear to be a collection of bullish developments to signal a definitive upside extension today. While a single day of trade does not make a pattern, it did appear as if the gold market attempted to shift its focus yesterday away from classic demand fundamentals that have undermined gold and silver prices since the August highs.
PALLADIUM / PLATINUM
In retrospect, the action in the PGM markets yesterday was surprising as all indications from outside markets, currencies and scheduled data flow favored the washout in prices. However, palladium might see relatively more support than platinum against fresh selling due to its “China put” but the China assistance won’t be enough to hold up prices in the event that today becomes a big picture macroeconomic meltdown day.
COPPER
While the action in the copper market yesterday was certainly impressive but seemingly lacking a key bullish fundamental development, this morning the trade is confronted with negative supply news. In fact, LME copper stocks forged another massive inflow of 15,975 tons while Shanghai copper stocks showed a more moderate build of 1093 tons.
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