Written Commentary
GOLD / SILVER
The surge in global Delta variant infections has prompted a measure of flight to quality buying of gold with the US daily rate of infections approaching 34,000 on Wednesday. In another emerging bullish theme, there are reports from the international monetary fund that central bankers have resumed gold purchases, with Brazil thought to have added 42 tons to its reserves last month, which in turn is the largest purchase by that bank in over 2 decades.
PALLADIUM / PLATINUM
In retrospect, the massive washout in the palladium market yesterday appears to be the result of a very negative UBS view that palladium prices are poised to fall consistently into next year, as the ultra-expensive palladium market is being substituted with cheaper platinum in auto catalyst production.
COPPER
The action in the copper market this morning is once again very discouraging to the bull camp, as prices have not made significant gains off a pair of very bullish headline stories. In addition to an extension of a 2-month-old pattern of sharp declines in weekly Shanghai copper warehouse stocks, surging nickel and tin prices should have provided the copper futures with a fresh high for the week.
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