Written Commentary
GOLD / SILVER
We are surprised that gold and silver prices are tracking higher this morning in the face of a positive dollar trade and slightly soft Chinese CPI and PPI readings for June. After posting notable gains early yesterday morning in the US trade, gold gave back the gains leaving a temporary resistance level at $1,815.70 in August gold.
PALLADIUM / PLATINUM
While both palladium and platinum ETF holdings increased yesterday, the increases were marginal leaving the year-to-date gain in palladium ETF holdings at 2.9% and the year-to-date gain in platinum holdings at 11%. With palladium yesterday forging an inside day range and prices unable to hold rallies in each of the first 3 days this week, the bear camp has a technical edge today.
COPPER
Overnight action in copper points to further sideways consolidation action with a minimally bearish rise in daily LME copper warehouse stocks this morning more than offset by a notable decline in weekly Shanghai copper stocks. In general, the copper market did not show a significant reaction to soft Chinese inflation data, perhaps because the data prompted talk of increased liquidity from the PBOC.
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