Written Commentary
GOLD / SILVER
While the gold market is tracking lower as of this writing, the February contract managed a higher high overnight and reached the highest price since November 22nd. However, the gold and silver markets appear to be on edge because of surging infection counts, higher interest rates and a higher US dollar. The gold market is fighting negative sentiment from gold’s 3.6% annual decline in 2021 as that figure is circulating in the financial Press this morning. In a developing negative for silver, it should be noted that silver ETFs reduced their holdings by 9.4 million ounces last week, which suggest investment interest in the metal remains negative.
PALLADIUM / PLATINUM
The charts remain in favor of the bear camp in palladium with last Friday’s large range down washout seemingly signaling the $2000 level as “too expensive”. In retrospect, the palladium market leans in favor of the bear camp to start today with last year’s 22.2% decline the first annual decline in 6 years. With a positive upside extension to 4-day highs to start the trading week, the platinum market appears to be marching to a different drummer than the rest of the precious metal markets. In a negative development, Platinum ETF holdings declined by 20,087 ounces in the last week of 2021 capping off a year where total holdings declined by 6.6%.
COPPER
With a 4-day high early today, the recovery bounce, (off last week’s lows) looks to be extended. Perhaps the copper market continues to draft lift from recent Chinese support for their economy. However, we see March copper locked in a range bound by $4.4985 and $4.3820. In fact, with US infection counts nearing 500,000 per day, silence on the status of daily Chinese infections and a lack of consistent declines in world copper exchange stocks, the bear camp has plenty of ammunition.
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