Written Commentary
GOLD & SILVER
While not a significant move initial action in gold from a technical perspective favors the bear camp this morning with prices forging a 5-day low. Apparently, the gold market is unimpressed with news that Swiss customs is reviewing imports of Russian gold last month to determine if those imports violate sanction rules. Looking ahead, it remains extremely difficult to predict daily movement in gold and silver prices as the highest probability for price action remains consolidation.
PALLADIUM & PLATINUM
Other than the increased potential for demand destruction, fear from escalating global recession fears, fear of lost demand in the auto sector (from rising loan rates and from fear of job losses), palladium might see additional pressure from reports that Russia could maneuver its export flow toward India and China and in turn totally usurp Western supply barriers. Similarly, the platinum market is also vulnerable to demand destruction fears from broadening recession fear and the market is also vulnerable to a small measure of liquidation in the event inflation fears are tamped down because of industrial commodity price declines.
COPPER
With another lower low extension this morning, September copper has reached the lowest level since February 2021 and might not find support until a past top from January 2021 situated two cents below this morning’s low. However, a more significant and substantial support/target price seen at $3.50, which represented value to the market from November 2020 to February 2021! With the market rushing to factor in a global recession, a modest increase in Shanghai weekly copper warehouse stocks and news that labor unions have agreed to halt protests in Chile, the bear camp remains in control.
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