Written Commentary
GOLD / SILVER
Clearly the gold and silver markets continue to retain some measure of flight to quality long positioning, as ongoing gains in global equity markets and favorable news from the vaccine front yesterday has resulted in yet another aggressive concentrated daily price decline this morning.
PLATINUM / PALLADIUM
While not a significant rally yesterday, palladium prices did forge a 3-day high and ventured back toward the top of a recent consolidation zone in a manner that suggests the market is periodically getting lift from the risk-on environment. On the other hand, we believe that the palladium market has already largely seen its big picture speculative rally, when it went parabolic prior to the pandemic and we now suspect that trader’s interest is now moving toward the platinum market.
COPPER
Despite news of a strike settlement in Chile, noted weakness in precious metals prices and a narrowing of the world copper market deficit by the International Copper Study Group overnight, the copper market has charged into fresh contract high ground. Apparently, the International Copper Study Group reduced its 125,000 ton global deficit projection from last month to only 72,000 tons as of the end of August but that still leaves the copper market at a 293,000 ton deficit in the January through August timeframe.
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