Written Commentary
GOLD / SILVER
While gold and silver are starting out weaker this morning both markets remain within recently developed uptrend channels, with gold support from the bottom of that channel pegged at $1735.80 and silver support from its channel seen at $25.01. With the dollar bounce overnight coinciding with the initial corrective action in gold and silver prices it-would-appear that the dollar is the primary driving force for the current trade.
PLATINUM / PALLADIUM
All things considered, the PGM markets performed poorly yesterday especially in the face of noted strength in gold and silver and that weakness has extended into the early Friday trade. However, prices should see support from news earlier this week that UBS reduced its 2021 world mine supply for platinum by 140,000 ounces and projected a global deficit of around 185,000 ounces. The palladium market was expected to see an even larger mine supply forecast reduction from UBS of 545,000 ounces and UBS projected a global deficit of 1 million ounces.
COPPER
Fortunately for the bull camp, the latest daily jump in LME copper warehouse stocks of 6,025 tons was offset by a weekly decline in Shanghai copper warehouse stocks of 4,060 tons. Clearly, the copper market failed to benefit from Chinese inflation readings overnight, as the readings were offsetting, and the markets did not make the leap of faith of translating inflation data into a growth signal.
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