Written Commentary
GOLD / SILVER
In retrospect, the action in gold and silver prices this week was impressive with prices seemingly “sneaking” higher and managing the gains in the face of outside market adversity. It should also be noted that gold prices have clawed higher this week despite gold ETF holdings extending the pattern of daily outflows to 24 straight days.
PLATINUM / PALLADIUM
Clearly the palladium market is extensively overbought from a short-term technical perspective, but overnight news flow continues to project higher prices from tightening supply and demand conditions. Unfortunately for the bull camp, yesterday palladium ETF’s saw a noted outflow of 5,279-ounces, but holdings remain 5% higher on the year. Platinum on the other hand has not shown significant upside action this week and instead has remained caught in a sideways consolidation zone.
COPPER
We are not surprised with the 6-day low early this morning, as the copper market saw yet another 5-digit jump in weekly Shanghai copper stocks and that bearish news was magnified by a 7.2% decline in Chinese February copper concentrate imports. In fact, the pattern of rising Shanghai copper warehouse stocks is now approaching 2 months in duration and it is difficult to argue against a view that Chinese copper demand has softened with internal supplies building.
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