Written Commentary
GOLD / SILVER
In retrospect, the gold market has chopped sideways this week within a $26 range despite several days of noted dollar strength. In fact, the dollar yesterday nearly broke out to fresh contract highs leaving fear of currency related selling in play in the gold market today. On the other hand, silver has displayed much better technical action than gold recently and has seen inflows to silver ETF holdings recently.
PALLADIUM / PLATINUM
While we doubt projections of massive electric vehicle production from General Motors served to undermine palladium yesterday, that probably played a role in the spike down action. While we have nothing solid to base our opinion on, it seemed like platinum benefited yesterday from spread trading with palladium.
COPPER
With China back from holiday some traders were concerned that additional Chinese real estate problems could present themselves today. However, the Chinese news front remains thin, and the market should draft support from an International Copper Study Group world refined copper market deficit forecast of 42,000 tons for 2021. Unfortunately, the international copper study group also projected 2022 to present a surplus of 328,000 tons!
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