Written Commentary
GOLD / SILVER
Clearly, the gold and silver markets this morning are playing catch-up to yesterday’s hawkish US Federal Reserve meeting minutes release. In fact, the gold trade is discounting news that the Perth Mint saw 2021 gold sales reach the highest level in 10 years (gold coins and minted bars), a very hot overall Euro zone producer price index gain of 1.8% and gold ETF adding to their holdings for the 7th straight day.
PALLADIUM / PLATINUM
Despite a significant letdown in gold and silver prices over the last 24 hours, the decline in palladium this morning is relatively modest. However, the palladium market yesterday nearly reached significant downtrend channel resistance line (from an 8-month downtrend pattern) and that downtrend channel resistance line is lowered to $1981.50 today. The platinum market this morning is being hit relatively harder than palladium which leaves the spike high yesterday forging a new lower downtrend channel resistance line which comes in today at $1001.60.
COPPER
Like most other physical commodities the copper market has been tripped up by the US Federal Reserve shift. Apparently, outside market forces are controlling copper, as a Chinese services PMI reading for December overnight was better than the prior month and daily LME copper warehouse stocks have extended a recent pattern of daily declines. Clearly, the copper trade is concerned that the shift by the US Federal Reserve, combined with the threat of slowing from the explosive omicron infection surge is enough to give the bear camp control.
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