Written Commentary
GOLD / SILVER
The gold and silver markets start the Wednesday trade under moderate pressure, with strength in the dollar likely providing the brunt of the weakness. On the other hand, the markets overnight saw a slight uptick in US treasury yields and a significant decline in Perth mint gold sales in a possible sign that pricing near $1900 might be discouraging retail demand.
PLATINUM / PALLADIUM
The PGM markets are showing corrective action with both platinum and palladium tracking in sync instead of diverging as was seen on Monday. Fortunately for the bull camp, Chinese PMI data was positive and European producer prices this morning jumped by more than expected keeping inflation buzz as a supportive element for the PGM markets.
COPPER
While the copper market forged a 9-day high yesterday, it was unable to hold in positive territory in the wake of positive Chinese factory news and ongoing threats against supply in Chile. In fact, the supply-side is threatened further by the potential for a copper tax in Peru, which is expected to negatively impact Chinese mining companies in the country.
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