Written Commentary
GOLD / SILVER
In retrospect, the massive declines in gold and silver yesterday seemed irrational as recent action in gold and silver appeared to signal their attention to the ebb and flow of physical commodity market developments. However, the sharp washout in the face of the vaccine announcement clearly suggests a large contingent of safe-haven bulls were indeed holding positions as a hedge against unending economic uncertainty.
PALLADIUM / PLATINUM
While the palladium market was under pressure at times yesterday and seemed to be missing out on the euphoria from the vaccine news, it did forge a fresh higher high for the move and spent most of the trading session holding up around the $2,500 level. With the big range down failure in January platinum yesterday, we see a temporary retest of the early November low down at $838.20.
COPPER
The copper market is showing some initial corrective action today and we see that as largely the result of the overbought condition from yesterday, but also because of very discouraging Chinese inflation data released overnight. In fact, with the Chinese equity markets among the equity markets declining overnight the outlook for Chinese copper demand is temporarily called into question.
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