Written Commentary
PRECIOUS METALS
Gold/Silver:
The massive range down trade to the lowest level since December 16th yesterday in gold certainly alleviates a portion of the dramatic overbought condition into the most recent record high. Furthermore, reports that Ukraine attacked Russian president Putin’s residence has reduced prospects of a peace deal, and with the US president yesterday threatening to sue the Federal Reserve Chairman over incompetence with respect to remodeling Fed headquarters and the prospect of renewed weakness in the dollar should provide a solid base of fundamental support in February gold at $4350.20.
BASE METALS
Copper:
While yesterday’s sharp rally to the highest level since the end of July points to the ongoing existence of a strong bull trend, yesterday’s large washout was forged on a significant jump in trading volume and a decline in open interest which suggests a short-term profit taking bias could linger in thinning conditions.
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