Written Commentary
GOLD / SILVER
As in many markets, the unrelenting buzz of higher interest rates has finally unnerved equity markets which in turn tempers economic hopes and deflates inflationary expectations. As if rising rates were not enough for the bear camp to seize control, persistent contract highs in the dollar index adds another element of selling pressure to gold and silver.
PALLADIUM / PLATINUM
While the palladium market attempted to delink with the rest of the precious metal markets last Friday, a clean sweep of negative outside market influences has put the market on the defensive again today. Adding into the selling mentality in palladium is a worsening infection situation in China (fears of lockdown in Beijing) and that is exaggerated by the shift into a global tightening environment. With the platinum market last week showing weakness before the markets surrendered to rising rates, the massive failure last Friday was not surprising.
COPPER
Like many other physical commodities, the copper market is obviously feeling pressure from a very hawkish US Federal Reserve presence. With the copper market last Friday undermined by a series of headline lockdown stories from China, the outlook for copper demand is certainly deteriorating. Also, the Chilean government has denied a permit for an expansion of an Anglo-American copper mine which highlights the ire of environmentalists and socialist governments against the mining companies.
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