Written Commentary
GOLD / SILVER
The action in the gold and silver markets continues to be confusing as the markets failed earlier in the week in the wake of the hottest monthly inflation reading in decades. On the other hand, gold and silver have consistently tracked higher in the face of softening US rates and weakness in the dollar. Surprisingly, both gold and silver ETF holdings increased yesterday but silver ETF holdings will probably finish the week with a net outflow.
PLATINUM / PALLADIUM
With the palladium market into the low yesterday sitting more than $200 an ounce below the May high (an all-time high) and the market aggressively rejecting the $2,800 level yesterday, it would appear that a technical value zone has been found. While the platinum market broke out to the downside yesterday it exhibited much less volatility and a narrower range than the palladium market.
COPPER
With the copper market likely to post the first weekly loss in over a month, fresh chart damage this morning, a massive weekly Shanghai copper warehouse inflow, the first daily LME copper warehouse stock inflow in 21 days, and signs that the Chinese government is growing impatient with surging commodity prices, copper prices are likely to extend early losses.
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