Written Commentary
GOLD / SILVER
The gold and silver markets continue to engineer a stealth rally with prices clearly benefiting from the Fed dialogue. Certainly, the markets also benefited from the reversal in the dollar yesterday and a rejection of the overnight low in the dollar has not hindered the strength in gold and silver early today. Not surprisingly, the Fed promised its ongoing support for the economy, they upgraded certain economic projections and continued to invite higher inflation.
PLATINUM / PALLADIUM
While the platinum market has clearly underperformed the palladium market this week, traders should be aware of a very large 17,000-ounce inflow to platinum ETFs on Tuesday, as there have now been two significant daily inflows, which is uncharacteristic of ETF holdings over the last several months.
COPPER
While the copper market managed to rally following the US Federal Reserve statement and press conference yesterday, prices failed to show signs of fully restarting the rally from the early March washout and that is disappointing to the bull camp. Perhaps the copper trade is somewhat hesitant to be long into the first US/Chinese meeting involving the new US administration, as it appears that trade tensions continue to flow from officials on both sides of the Pacific.
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