Written Commentary
GOLD / SILVER
Despite a poor finish at the end of last week gold and silver are showing very minor positive action to start and we attribute that to a fresh downside breakout in the dollar. Last week the precious metal markets correlated with treasuries, but with the fresh downside breakout in the dollar that outside market force could be controlling prices today.
PLATINUM / PALLADIUM
With another new all-time high forged at the end of last week, the palladium charts remain in favor of the bull camp. The market should see support this morning from an analyst forecast that palladium will be in deficit of about 1 million ounces this year because of surging demand and level supply. The platinum market continues to lag other “recovery commodities” and is clearly not drafting much spillover buying from palladium.
COPPER
With a very strong finish last week, news that China intends to stimulate domestic consumer demand, news that China is forcing reduced smelting for clean-air purposes and a noted reduction in the net spec and fund long position since the first week of February, the bull camp has a-number-of issues in its favor to start the week.
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