Written Commentary
GOLD / SILVER
Fortunately for the bull camp, the gold and silver trade are catching a lift from a broad-based risk on vibe flowing from equities and higher commodities. However, so far gold and silver are unable to get a positive lift from the inflationary argument, with the markets fully confident in the Fed’s ability to squelch inflation before it becomes a problem.
PALLADIUM / PLATINUM
Despite being significantly short-term and intermediately overbought, the palladium market extended its rally to start the week as the Russian situation remains tenuous. Therefore, the threat against supply remains in play with short-term technical signals like stochastics remaining in a “buy mode”. With very poor action on the charts at the end of last week, the divergence between platinum and palladium remains very significant. As indicated in all other metals coverage besides palladium this morning, short-term technical indicators like stochastics remain in sell mode in platinum.
COPPER
With a failure below the 50-day moving average last Friday the copper market sees that level ($4.3825) as a resistance/pivot point to start today. With Chinese markets closed for holiday, the copper bulls are lucky to be presented with risk on flowing from equities. About the most positive thing that can be said about the copper market is it had a modest net spec and fund long ahead of last week’s $0.22 washout.
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