Written Commentary
GOLD / SILVER
With a fresh higher high for the move in the dollar index this morning, the gains in gold appear to be short covering from yesterday’s debacle washout. Gold and silver have not transitioned into a position to benefit from inflation and instead are concerned about sharp increases in interest rates, a surging US dollar and softer industrial demand for copper.
PALLADIUM / PLATINUM
While the palladium market has recovered from yesterday’s latest spike down move, a pattern of lower highs and lower lows looks to be extended into another session. The platinum market avoided the aggressive selling seen in the palladium market on Tuesday, but the environment for platinum remains bearish with demand views at best being heavily scrutinized.
COPPER
The copper market deserves further corrective action after a 4-day rally of $0.30. However, we see further downside action in copper directly ahead as the outlook for the Chinese economy continues to deteriorate among power outages, surging material prices and regulatory fears toward the Internet/tech sector.
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