Written Commentary
GOLD / SILVER
While not all the sharp washout in equities is attributable to the prospect of a March interest rate hike, overall market sentiment is mostly locked and loaded on that potential outcome today. Therefore, the gold market enters the session today under pressure and is likely held back further by signs of strength in the dollar.
PALLADIUM / PLATINUM
Official sources from the European Union suggest a Russian incursion of the Ukraine is imminent and that threat against supply should continue to dominate the PGM trade today. The March palladium contract continues to post higher highs and has now reached the highest level since September, and it could continue to rise rapidly given a very significant supply threat. With the platinum market basically trading within its Monday range throughout the Tuesday trading session, it appears as if palladium and platinum have started to diverge. Clearly platinum supply inside Russia is important but not as important to the world as Russian palladium supply.
COPPER
After rejecting the 200-day moving average at $4.374 yesterday the copper market appears to be tracking back toward the upper end of the consolidation situated at $4.58. Fortunately for the bull camp, daily LME copper warehouse stocks have resumed a pattern of daily outflows again thereby returning a main bull pillar to the market equation.
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