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Flight to Quality Offsets Higher Treasury Yields

GOLD / SILVER

Gold and silver held up surprisingly well overnight in the face of sharply higher Treasury yields and a stronger dollar, which came in the wake of yesterday’s comments by Fed Chair Powell that the Fed would turn more aggressive on rate hikes if necessary. The conflict in Ukraine continues to provide support to the metals.

PALLADIUM / PLATINUM

Platinum and palladium were mixed overnight after closing higher on Monday. Reports that Shenzhen, China would relax some of its Covid restrictions were supportive, as a recovery of computer chip production would bring a sigh of relief to automobile manufacturers and support autocatalyst demand. Palladium and platinum sold off early last week after the China Covid shutdowns were announced. Both markets have traded in huge ranges over the past couple of weeks as they corrected their rallies off the Ukraine war.

COPPER

Copper prices have seen coiling action over the past two sessions and have started off today’s action in a tight range, but they remain well above last week’s lows. A positive shift in global risk sentiment can help the market extend its recovery move this week. May copper finished yesterday with a loss.

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