Written Commentary
GOLD / SILVER
Both gold and silver have started off on a softer footing with the declines modest and not indicative of an impending wholesale washout. However, the dollar has regained its footing, Chinese November inflation readings were just a touch above expectations and many physical commodities are tracking lower early today.
PALLADIUM / PLATINUM
Clearly, the palladium market is unconcerned about overnight news indicating South African PGM output in October increased by 24%, but a continuation of that recovery in output ahead could eventually be a major negative for both palladium and platinum. While yesterday was not a big picture macroeconomic risk on day platinum and palladium seemed to be cheered by the favorable virus events from Tuesday and likely to see follow-through risk on sentiment gains ahead.
COPPER
While the copper market has forged a pattern of higher highs and higher lows this week, the gains have been incremental and forged on low trading volume and declining open interest. In other words, the bull camp does not appear to be in “great numbers” and that is surprising given the favorable omicron news from earlier in the week. In a minor negative, LME copper warehouse stocks are beginning to show periodic daily inflows this week and that undermines the tightening supply argument.
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