COPPER
While the copper market started last week with a significant rally in the wake of positive Chinese data and strength in equities, the market finished last week back on its heels and has opened poorly in the new trading week. In fact, given the fresh lower low for the move overnight, risk-off from equities, more inflows to copper exchange warehouses and emerging market infection concerns, we think copper will see a lot of trade below $4.00 this week.
GOLD / SILVER
Taking a step back from the markets, it is clear that the June gold contract found strong value just above $1,650 with interim resistance coming in at last week’s highs of $1,759.40. Last week, gold and silver established inverse correlation with the US dollar again with the dollar at times the all-encompassing influence on gold and silver prices.
PLATINUM
In retrospect, the palladium market failed to sustain gains in the face of new all-time highs in US equities last week, and that suggests the market is not tightly tethered to the ebb and flow of the outlook for the global economy. Palladium positioning in the Commitments of Traders for the week ending April 6th showed Managed Money traders are net long 3,420 contracts after net buying 173 contracts. The Commitments of Traders report for the week ending April 6th showed Platinum Managed Money traders added 3,591 contracts to their already long position and are now net long 24,264.
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