Written Commentary
GOLD / SILVER
Gold and silver were mixed overnight in anticipation of today’s June jobs report. This came after they closed lower yesterday on resurgence in economic optimism and positive reports on a vaccine against Covid-19. The ISM Manufacturing Index released yesterday came in a 52.6 for May versus 43.1 in April. This was the strongest reading since April 2019 after three straight months of contraction.
PLATINUM / Palladium
Palladium and platinum fell under modest pressure on Wednesday despite some improvement on the economic front, as the markets likely felt pressure from the weakness in gold and silver. The twin stories of strong ISM data and progress on the vaccine front should have supported demand ideas for auto-catalysts, particularly for palladium, which is used for automobiles, but the markets appeared to be pulled lower by weaker action in gold and silver.
COPPER
Copper is on track for an 11th positive day in 12 sessions, as the market is seeing positive developments in the supply and demand sides of the market. September copper reached a new 5-month high at one point on Wednesday and then shook off a midsession pullback to finish the session with a moderate gain. The latest Caixin Chinese manufacturing PMI came in stronger than forecast and reached its highest level since the pandemic started.
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