Written Commentary
GOLD / SILVER
While gold and silver prices are starting off weaker both markets retain positive chart structures, and the US dollar is poised just above a downside breakout point early on. In retrospect, the gold and silver markets survived the FOMC meeting minutes released that seemed to signal the beginning of the Federal Reserve tapering process.
PALLADIUM / PLATINUM
With the palladium market poised to finish the week sharply lower, a prediction of a 1-million-ounce 2021 global deficit from earlier in the week seems to have been fully discounted. Furthermore, UBS overnight has predicted a 10th consecutive global deficit and in turn has predicted above ground supply will have to be used to meet demand. the platinum market enters the last trading session of the week sitting on substantial consolidation low support of $1,200.
COPPER
In our opinion, the copper market suffered a breakdown this week primarily because of fears that China could be attempting to prompt a wave of selling throughout physical commodity markets. Fortunately for the bull camp, this week’s corrective action has partially balanced what was a very overbought spec and fund long positioning. While there does not appear to be a near term resolution to a developing labor threat in Chile, the press is reporting the parties are preparing for a long strike.
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