Written Commentary
GOLD / SILVER
Gains in gold and silver from earlier in the week have been extended early today in a fashion that begins to point to the development of uptrends. The rally in gold and silver does not appear to be the result of increased flight to quality interest as Chinese real estate conglomerate Evergrande managed to make a key interest payment, global equities are positive, and the Dollar has not rallied this week.
PALLADIUM / PLATINUM
With the palladium market yesterday extending a pattern of significant daily volatility and failing to track with platinum, we expect ongoing divergence between the 2 markets. Obviously, the PGM markets yesterday were impacted by the broad-based risk off commodity environment which seemed to have its origin in stagflation fears. Unlike gold and silver, palladium, and platinum ETF holdings this week have posted consistent inflows.
COPPER
While the copper market is trading higher early today, it remains near yesterday’s sharp range down lows. The market might be undermined because of news that power curbs in China have reduced production of finished copper products, which in turn means less demand for raw copper.
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