Written Commentary
GOLD / SILVER
While last week gold and silver showed promise with a 3-day series of gains, the focus of the precious metals markets continues to shift daily thereby adding chop to daily price action. However, the action in the dollar has had the most consistent impact on gold and silver, with the markets showing very little in the way of reflation gains even in the face of massive “risk on” economic euphoria sessions.
PLATINUM / PALLADIUM
In retrospect, palladium and platinum markets appear to have settled back into a spread trading pattern as prices have displayed a lot of divergence. In our opinion, both PGM markets retain the potential for large price gains in the event the trade begins to embrace the idea that more portions of the world will begin to reopen with industrial and jewelry demand likely to improve. Last week palladium ETF holdings increased by 3181 ounces but declined Friday by 685 ounces to remain 1% higher on the year.
COPPER
With a fresh upside breakout for the move this morning the copper market has started the week out on a positive footing, with buying early today the result of favorable Chinese data. In the first 2 months of 2021 China saw an increase in unwrought copper imports of 4.6%, while imports of copper ore and concentrates rose marginally.
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