Written Commentary
GOLD / SILVER
Precious metals have kept within fairly tight range so far, but are maintaining upside momentum with gold climbing back above the 200-day moving average and silver reaching a 3-week high. While initial gains in gold and silver prices Tuesday were likely from of a downside reversal in the dollar, we suggest they probably drafted some from a risk on equity vibe. In other words, gold, silver, palladium, and platinum behaved like classic physical commodities seeing an improvement in demand.
PALLADIUM / PLATINUM
The PGM metals have been able to shake off early pressure and have climbed back into positive territory, with platinum regaining the upper hand on palladium as it reached a 3-week high. With March palladium hitting its highest trade since November 26th yesterday, it is possible that the trade is embracing the risk on argument that omicron may have less of an impact as prior variants. Not to be left out, the platinum market also surged higher Tuesday in a move likely associated with the broad-based risk on psychology.
COPPER
After reaching a 4-week high early in the day, the copper market has turned back to the downside and has fallen into negative territory coming into this morning’s action. There are reports that a Peruvian village lifted its blockade to the Las Bambas mine, while news that 3 doses China’s Sinovac vaccine may not be effective against the Omicron COVID variant have put pressure on the copper market early in today’s action.
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