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Sideways to Lower Action For Metals


In retrospect, with fresh upside breakouts in US interest rates and the dollar yesterday, the ability of gold and silver to sidestep a major range-down day yesterday was impressive. Certainly, broad-based global uncertainty and anxiety from the war, support gold but rising talk of aggressive tightening, an expanded lockdown of Shanghai and generally bearish charts leaves the edge with the bear camp.


The palladium market has lost its bullish buzz with trading volume and open interest declining consistently from the middle of last month. However, with Russian atrocities surfacing daily, Western powers are likely to scour for fresh sanctions designed to economically isolate Russia. It goes without saying that platinum is also facing a plethora of negative outside market forces (particularly rising rates) and therefore we see fundamental and technical signals pointing down.


The copper market is likely to experience a significant expansion in volatility directly ahead especially given numerous threats against global copper demand. Certainly, recent declines in Chilean copper production provided copper with a bounce over the last 5 trading sessions, but historically the market has usually embraced the ebb and flow of Chinese copper demand expectations over most other developments.

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