Written Commentary
GOLD & SILVER
While the bulls in gold and silver were not overly hopeful of some type of reprieve from the Fed in the FOMC meeting minutes yesterday, they should be relieved that the Fed did not use the meeting minutes to further tamp down inflationary expectations with uniform hawkishness. As it is the projected plan of rising rates is unchanged from what has been known in the market for several weeks and therefore the impact from the Fed on gold and silver might dissipate quickly in the near term. Therefore, action in the dollar is likely to step in as a key driving force again and this morning it is offering very little direction
PALLADIUM & PLATINUM
Even though the June palladium contract broke out of a 5-day range in both directions, we think the market lacks news to drive consistently in either direction. Given the capacity of palladium to hold $100 below the outbreak of the war price, the trade clearly thinks Russian palladium supply continues to “get out” to the world market. Without an avalanche of well-wishers buying Queen Elizabeth platinum coins for her Platinum Jubilee, the prospects of a sudden pickup in platinum demand are very low.
Set of copper pipes of different diameter lying in one heap
COPPER
The path of least resistance in copper remains down with a close-in pivot point of $4.20 unlikely to hold up prices. However, a developing trend of noted daily LME copper warehouse stock outflows provides an offset to the constant drumming of recession talk. In retrospect, this week’s global data signals a “slowdown”, but the markets appear to be factoring hard landing or recession.
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