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Metals Vulnerable to Soft Energy Prices


Gold and silver prices look to continue to gyrate wildly with 180 degree shifts in direction taking place without notice. In fact, overnight news of another large SPR release from the US has deflated oil prices and in turn has resulted in spillover selling of gold and silver. Yet another fresh negative came from J.P. Morgan overnight following an upward revision on how quickly the US Fed will raise interest rates. Obviously, seeing Russia renege on its promise to slow their attack (as a show of good faith) rekindles fears of a long-term uncertain environment.


We suspect palladium is undermined early today because of disappointing Chinese manufacturing and nonmanufacturing PMI readings for March. While the palladium market continues to experience excessive volatility yesterday’s action showed prices holding in positive territory for the entire trading session. In July platinum, the market also spent the entire US Wednesday trade in positive territory and regained a key psychological pivot price of $1,000.


While the copper market is showing weakness this morning because of disappointing Chinese manufacturing PMI readings for March prices should be underpinned from bullish Goldman Sachs price projections released overnight. Other overnight news underpinning copper prices was seen following news that Europe’s largest copper smelter announced it would stop buying copper concentrate from Russia and that shifts demand toward non-Russian producers.

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