Written Commentary
GOLD & SILVER
While June gold managed to reject the overnight spike down extension, the charts remain bearish while bearish fundamentals have merely moderated. Investors also remain bearish toward gold and silver with gold ETF holdings yesterday posting a 6th straight daily outflow. Fortunately for the bull camp, initial risk on flowing from equities and most physical commodities, provides some cushion in a market poised for more declines.
PALLADIUM & PLATINUM
While the palladium market has avoided a fresh new low for the move, the charts remain negative and ETF holdings posted another decline yesterday of a relatively large 9,000 ounces which boosts the year-to-date outflow to 6.9%. Certainly, a portion of the selling yesterday was the result of building fear of a global slowdown, selling of all commodities and the ever-surging US Dollar. With the July platinum contract into the Thursday US close still sitting $37 above the late April low and the most significant support point seen down at $888.80, we assume downside momentum will remain in place.
COPPER
As suggested in other coverage this morning, news that the Shanghai lockdown will remain in place until May 20th, certainly keeps Chinese copper demand fear hanging on the market today. Therefore, the copper market remains vulnerable from a nearly universal commodity selling threat from deteriorating global demand. On the other hand, with copper at times yesterday down by nearly $0.17 and the market nearing previous credible consolidation low levels on the charts, chasing the market with fresh sales is not advised.
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