Written Commentary
GOLD / SILVER
The path of least resistance in gold has turned down to start this morning, with a partial technical failure on the charts, modest gains in the dollar early on and from fears of rising US rates expected in the event jobs data in the coming 2 sessions is positive. Unfortunately for the bull camp, the gold and silver trade are not focused primarily on inflation but instead have shifted their focus between interest rates and the dollar and therefore we suspect the most important market today will be treasury bonds.
PALLADIUM / PLATINUM
Surprisingly, the palladium market is not under significant pressure following an analyst prediction that PGM auto catalyst demand is likely being undermined as a result of the global chip shortage with the chips necessary in the manufacture of vehicles. Not surprisingly, the platinum market remained inside the large Tuesday trading range yesterday, with prices managing to hold above critical consolidation low support at $1,179.10.
COPPER
With a fresh lower low for the move and a 4-day low overnight, the copper market appears to be on a track to retest $4.50. However, near term Chinese copper demand fears could result in more selling which in turn creates the potential for bargain-hunting buying. Apparently, there is the prospect of shortages of Chinese refined copper supply due to power shortages in China and that could prompt buying, on a slide in the coming 36-hours.
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