Written Commentary
GOLD / SILVER
We see the price action on Wednesday as some form of bottom action in gold and silver. Clearly, the rally in gold and silver (and many other physical commodities) were the result of the Biden stimulus/infrastructure program announcement, which came in above $2 trillion. Therefore, it is not surprising to see a glimmer of reflation action in gold and silver again, but in the early going today the bullish buzz has been tamped down slightly.
PLATINUM / PALLADIUM
The June palladium contract recovered and extended the bounce from the midweek low and would appear to have little in the way of resistance until $2,649. However, a large South African fund has reportedly plowed $7.4 billion into PGM assets and that should spark some bullish buzz. However, Tuesday platinum ETFs saw an inflow of 6,317 ounces bringing the year-to-date gain up to 2.1%, but ETFs yesterday dropped a very minimal 67 ounces.
COPPER
All things considered, the copper market yesterday performed poorly in the wake of positive forecasts of official Chinese PMI data, and from significant risk-on sentiment flowing from US equities. However, official Chinese factory data released overnight was less than robust with some market participants pegging the data as confirming a slowdown.
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