Written Commentary
GOLD / SILVER
Apparently the windfall for gold bulls from the Federal Reserve symposium last week has waned, with prices stalling just under $1827 on Monday. In other words, the markets were relieved that the Fed was not actively planning tapering now, but many analysts and traders think tapering could be right back on the table in the event this Friday’s nonfarm payroll report approaches 1 million jobs gained.
PALLADIUM / PLATINUM
Certainly, disappointing Chinese manufacturing and nonmanufacturing PMI readings this week thickened resistance in December palladium at the $2,500 level and with a private PMI report overnight confirming the soft official Chinese PMI data, demand expectations for palladium should be undermined. While October platinum managed a 5-day high yesterday, we do not see fundamental justification for prices to rise. In fact, platinum ETF holdings yesterday declined by a notable 6,998 ounces for a single day decline of 0.2% of total holdings.
COPPER
With the Chinese government resuming strategic sales of copper and other industrial materials this morning, the ECB talking about tapering, a private Chinese manufacturing PMI report confirming weak official PMI results from yesterday and the charts exhibiting a breakdown this morning, a sub $4.25 trade is likely.
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