Written Commentary
GOLD / SILVER
Not surprisingly, gold, and silver prices have opened lower in the face of a stronger dollar and a widespread risk off views toward physical commodities around the world. With gold posting a 26th straight day of outflows from ETFs and outflows from all other precious metal ETFs seen overnight it-is-clear that the entire sector remains out of favor.
PLATINUM / PALLADIUM
In a bearish development for both platinum and palladium, both ETF holdings yesterday fell and are beginning to show a pattern of declines. In fact, palladium ETF holdings yesterday declined by 6,091 ounces which in turn is a single day decline of 1.2% of all holdings! As indicated in gold and silver coverage this morning, sharp declines in several industrial material prices in Asia, adds to the downward bias in the PGM markets as that further tamps down the “reflation” view.
COPPER
While the May copper contract overnight did forge a 6-day high overnight the market quickly fell back from that level as if some form of high was put in place. In addition to yet another large daily LME copper stock warehouse inflow of 8,525 tons overnight, the copper market should see spillover pressure from a very sharp slide in aluminum prices overnight.
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