GOLD SILVER
With a series of hot inflation readings overnight in the UK and Eurozone, the strengthening dollar did not stop gold and silver from tracking higher early in the action. . However, in addition to signals of rising inflation, there are fears of rising interest rates, with the Bank of England and Bank of Canada perhaps closer to raising rates than many other banks. power stations. In the future, markets could be shaken by the president’s decision on the next Federal Reserve chairman, as the balance between achieving full employment and controlling inflation could be different for different leaders. Recent statements by members of the Federal Reserve have varied, with James Bullard pushing the Fed to become more hawkish and Mary C. Daly saying it is still too early to act. Another potentially favorable development came from the US Treasury Secretary, who warned that December 15 would be a default deadline for the United States. As the December gold contract forged a new high for the move yesterday, the market failed and recorded a modest reversal. The dollar appears to be in a moonshine, discouraging buyers of gold and silver. Some traders have suggested that a significant jump in US economic activity from yesterday’s reports caused the reversal, but we suspect Bullard’s comments about the need to orchestrate a hawkish policy was the real culprit for the reversal. . October US export prices jumping a record 18% year-over-year are another inflationary concern for the Fed, and as a result, the Fed’s comments are expected to stay bearish straight ahead. Gold and silver volatility appears to be on the rise as inflation threats from regular reports and anecdotal press evidence are likely to push prices up aggressively, while hawkish central bankers’ dialogue leads to harsh pauses. without notice. From a technical standpoint, open interest in gold stabilized on Monday and remains very high, suggesting that the gold market burned a lot of fuel during the rally in early November and can now be vulnerable to a significant decline.

PGM
The palladium market was the best player in the precious metals complex on Monday. However, with the recent record high specification and the fund’s net selling, we suspect that part of yesterday’s move was a stop loss buy. Still, short-term bullish targeting is seen as a fraction above $ 2,200, and key support is at Monday’s low of $ 2,082.50. Although the platinum market did not generate impressive gains like palladium to start the trading week, the charts remain bullish with lows and highs for the most part. While we have nothing to base our speculations on, it is possible that some of the inflation money is starting to view the PGM markets as undervalued and potentially capable of delivering above-average returns. or in the event that inflation becomes largely entrenched. Critical platinum support for January is valued at $ 1,062.70 with resistance set at $ 1,100.40.

MARKET IDEAS: We are seeing some vulnerability in gold and silver, as the Fed’s hawkish dialogue intensifies and the US dollar soars higher. The inflation story continues with a flurry of extremely hot reports from the UK and the Eurozone overnight, but without a surge in crude oil prices, gold might lack the catalyst for more momentum. high. After breaking through a 6-month-old downtrend channel resistance line last week, the December gold contract apparently lost its bullish momentum and rejected the $ 1,875 level on the charts in the process. . This long term downtrend channel resistance line has turned to support, with a pivot point at $ 1,855.35 today. We are not detecting an upcoming wholesale closeout, but with open interest climbing to 110,000 contracts since the start of the month, we would not rule out selling compacted stop losses or buying compacted stop losses on a breakout of. the range of $ 1,877 to $ 1,848.

THE COPPER

Bias down, Chinese news negative, stock market up.

Like gold, copper forged a reversal yesterday which takes the charts from bullish to bearish. The market is likely off balance with a rare and significant jump in daily LME copper stocks, up 5,525 tonnes this morning. However, this was only the third daily influx over the past 43 sessions. Warehouse stocks had fallen to their lowest level since March 12 and were approaching a key low since December 2005. Overnight, China reported that its production of refined copper fell by 0.3 % year-on-year in October, and that combined with port congestion slowing imports of copper materials adds to the initial downtrend this morning. While markets weren’t expecting any significant conclusions from the conference call between Presidents Biden and Xi, trade appears to be disappointed by the lack of substance in the talks. The bullish camp should also be disappointed with the lack of buying interest generated by a series of better-than-expected US economic data on Tuesday.

MARKET IDEAS: The short-term copper downside target for December is the low point of early November consolidation, which starts at $ 4.2800 and extends all the way to $ 4.270.