Written Commentary
GOLD / SILVER
December gold set back overnight but still held more than half of Wednesday’s gains. Inflationary expectations may have taken a hit yesterday with the lower-than-expected PPI number, and traders may be interested in taking profits. December silver was more demonstrative than gold on Thursday, following Wednesday’s rally with another sharp gain.
PALLADIUM / PLATINUM
Both PGMs were lower overnight, retracing some of their gains from Thursday. Goldman Sachs is predicting modest surpluses this year for platinum and palladium, blaming the semiconductor chip shortage and the slowdown in automobile production for reduced demand, and they don’t look for the automobile sector to normalize until 2023. They also look for platinum usage by the auto sector to get a boost from to the high price for palladium.
COPPER
With gains of more than 30 cents in past two sessions, copper needed fresh bullish supply/demand news to extend its rally, and it appeared to get it. December copper was up sharply overnight and is closing in its contract high from early May.
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