Written Commentary
GOLD / SILVER
While the gold and silver markets are significantly short-term oversold from yesterday’s debacle washouts, fundamentals remain in favor of the bear camp. However, seeing China infuse some liquidity provides some support for gold and silver, even though the liquidity injection was the result of a property company problem inside China.
PALLADIUM / PLATINUM
If the palladium market were to close at this morning’s early levels that would make a 3rd straight day of higher closes and that would also increase respect for the $2,000 level as support. Platinum was lower on Thursday while palladium was higher, and more importantly both markets avoided the steep declines gold and silver experienced.
COPPER
The news from China overnight is both negative and positive for copper prices. Seeing the People’s Bank of China provide liquidity in the repo market should be seen as supportive of copper, but the bank might have been forced to provide the liquidity because of severe troubles at massive China Evergrande a major real estate/housing company which is thought to be on the brink of default.
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