Written Commentary
GOLD / SILVER
While the gold market has given back a portion of the stellar gains from yesterday, the market held together impressively in the face of signs that the Fed was beginning to soften its view toward discussing tapering. While the Fed does not appear to be poised to put tapering in motion, fear of the Fed will provide periodic headwinds now for gold and silver prices.
PALLADIUM /PLATINUM
The PGM markets also showed divergence with the gold market yesterday, in a sign that they are tracking physical commodity forces instead of financial or flight to quality issues. Indications that China could be poised to deflate surging commodity input prices, could include palladium considering it has a key role in controlling pollution from the world’s largest car market.
COPPER
While it is not clear yet what action the Chinese government might take to quell the explosion in key industrial material prices, they appear to be focusing their dialogue on excess speculation. Remember, China dominates the world copper market, so threats to deflate copper and other industrial prices should be taken very seriously.
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