Written Commentary
GOLD / SILVER
The gold market remains vulnerable to further liquidation after last Friday’s noted failed rally attempt and because of a 3-day low on the charts early today. Surprisingly, the gold market has not drafted support from news overnight that Indian gold imports reached 93.5 tons in September compared to a dramatic pandemic influenced 8.4 tons of imports last year!
PALLADIUM / PLATINUM
Unlike the gold market, the palladium market continues to range sharply higher and has reached the highest level since September 10th. While the palladium market did not post another record net spec and fund short in the recent positioning report, the market remained net spec and fund short a moderate amount given the relatively low trading volume in the market. However, platinum should be held back by news of a very substantial outflow of ETF holdings last Friday of 10,505 ounces which in turn put the year-to-date change at a contraction of 3%.
COPPER
Surprisingly, the copper market managed to rally through disappointing US Jobs data last Friday and prices have continued higher this morning despite lower global equity market action. However, like the equity markets, the copper trade was presented with a disappointing headline nonfarm payroll reading but that news was partially countervailed by a reduction in the unemployment rate.
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