Written Commentary
GOLD & SILVER
Metals prices stabilized overnight, as most markets did ahead of the FOMC meeting results today. This follows another sharp day down in gold and silver on Tuesday. The trade is looking to the FOMC meeting results this afternoon to see if there will be any change in policy in reaction to the surprisingly hot CPI number on Friday. There has been talk that the Fed would raise rates 75 basis points this month, as opposed to the previously announced 50 BP increase.
PALLADIUM & PLATINUM
The PGM’s were higher overnight, as the markets appeared to be taking a breather ahead of this afternoon’s FOMC meeting results. News yesterday that Sibanye-Stillwater has halted production at two of its PGM mines in Montana after heavy flooding damaged an access road has offered minor, fundamental support, but we suspect that the focus is on Fed action and the outlook for the global economy.
COPPER
After losing nearly 30 cents in four sessions and reaching a 3 1/2 week low, copper appears to have found is footing as they are showing mild strength coming into this morning’s action. A surprise uptick in the reading for Chinese industrial production last month has provided underlying support to copper. Workers at Chile’s Codelco threatened to strike, and that has also given a boost to copper prices.
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