Written Commentary
GOLD / SILVER
Ordinarily, today would be a very significant day for gold and silver, as the Fed’s historically favorite inflation indicator (PCE) will be released this morning, with expectations for the month over month reading to show a larger gain that was posted in the prior month! However, the gold and silver markets are not focused on inflation, perhaps because of the Fed’s unending confidence that inflation will be temporary.
PALLADIUM / PLATINUM
The charts in palladium favor the bull camp with a 6-day high forged overnight, but so far this week’s gains have been forged on declining trading volume and open interest. While it is premature to project the beginning of an investment trend into PGM ETF instruments, the last several days have posted a-number-of outsized inflows and given the limited size of the palladium and platinum world market, the additions on the year are becoming significant.
COPPER
While the gains in the copper market to start today are not notable, the market took out yesterdays’ high and remains near 2-week high pricing. The copper market should see support from news of a Senate infrastructure package deal from yesterday. On the other hand, after a massive single-day inflow to LME copper warehouse stocks of 33,175 tonnes yesterday, the trade is presented with yet another massive inflow of 18,000 tons this morning.
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