Written Commentary
GOLD / SILVER
The bear camp has the edge in gold and silver this morning as a precipitous decline in the dollar has had little cushioning influence for prices. However, gold ETFs saw another inflow yesterday of 80,778 ounces and are now 9.3% higher on the year. On the other hand, silver ETFs saw an outflow of 2.6 million ounces but are still 2.1% higher on the year. Seeing gold and silver prices fail to benefit from a very significant downside reversal in the dollar highlights a serious lack of buying interest on the sidelines.
PALLADIUM / PLATINUM
Even though palladium has not correlated tightly with the ebb and flow of the war in Ukraine, the launch of a large offensive by the Russians is likely to result in further tightening of Russian palladium export flows. The platinum market continues to be the “off market” within the PGM complex but the market received some positive supply side support overnight from a downward revision in 2022 production from Anglo-American Platinum.
COPPER
Not surprisingly, the copper market extended weakness from the Tuesday trade into the Wednesday trade and in the process, prices fell to the lowest level since March 17th. Another large (9,950 tonnes) daily inflow to LME copper warehouse storage yesterday and a less significant inflow this morning of 1,725 tons serves to countervail a portion of lower copper production headlines overnight. Lower copper production was seen from Kazakhstan (1st qtr), Chilean miner Antofagasta and Anglo-American but the market does not seem to be interested in that critical news this morning.
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