Written Commentary
GOLD / SILVER
With the US dollar extending its downside breakout overnight and gold and silver prices under early pressure, it is clear that the markets have shifted their focus away from currency forces and toward the action in US treasury markets. Furthermore, gold has not benefited from news that Chinese gold imports hit a 14-month high, with March imports the highest since the first month the world became aware of the virus problem inside China.
PLATINUM / PALLADIUM
While the palladium market posted all-time highs yesterday, the market is under what appears to be a technical and fundamental correction to start today. The platinum market has been stubbornly weak even during the record rally in palladium and with palladium seemingly reversing its short-term trend, we suspect platinum will drive lower.
COPPER
Despite the negative risk off mentality in place overnight and into the US trading session the copper market broke out to the upside and remains close to the highs for the move. Apparently, China has pressured Chinese copper smelters to “clean up their act” and that has resulted in a reduction in processing of refined copper in efforts to reduce environmental impacts and comply with the government.
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