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The Gold Uptrend is Intact

GOLD / SILVER

While the gold and silver markets are showing early strength, we are skeptical of that action as some buyers have pointed to flight to quality interest because of the blow away record US daily infection count from Monday. However, gold and silver have shown many start and stop patterns off the inflationary angle and therefore a bull view should coincide with a bit of skepticism.

PALLADIUM / PLATINUM

Both PGM markets showed volatility yesterday, with the palladium market displaying more volatility than the platinum market. While we are suspicious of the belief that inflation lifted precious metals markets yesterday, that view is difficult to discount as internal fundamental news has been absent for many months in the palladium trade. While the platinum market also rallied yesterday it also lacked clear internal fundamental justification.

COPPER

After a strong close yesterday in March copper, a measure of back and fill weakness this morning is to be expected. Supporting copper going forward is renewed strength in Chinese iron ore prices, strength in precious metal prices, minor weakness in the dollar this morning and a decline in daily LME copper warehouse stocks of 1,775 tons.

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