Written Commentary
GOLD / SILVER
While the gold market has had an extremely bad year with prices set to end 2021 $160 below high for the year, prices this morning are poised for a 35-day upside breakout. The bull camp is hopeful that a consistent dollar index trade below 96.00 is a precursor to a downside extension which in turn would likely boost gold and silver. In an even bigger negative for silver, silver ETF holdings yesterday declined by a massive 5,012,018 ounces and amazingly look to finish the year “unchanged”.
PALLADIUM / PLATINUM
The bull camp should be disappointed this morning with a lower palladium price track in the wake of a slightly better-than-expected Chinese manufacturing PMI result for December. It should also be noted that platinum ETF’s saw an outflow 3990 ounces yesterday and holdings look to finish the year with a net decline of 6.4%. The generally optimistic economic outlook this week should be good for auto catalyst demand, but that is being held in check by the extremely high daily infection rates in the US and rumors that the city Xian, China may be facing a total lockdown.
COPPER
The copper market should be emboldened by favorable Chinese manufacturing PMI readings for December as they bested expectations. However, an 11,011-ton weekly inflow to Shanghai copper warehouse stocks countervails some of the optimism flowing from Chinese demand hopes this morning. Indications that Peru’s Las Bambas mine is still well away from production reaching full speed (following work stoppages) provides underlying support to the copper market.
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