Written Commentary
GOLD / SILVER
Gold continues to lose ground while silver is finding mild strength early in today’s action and has taken the gold/silver ratio well below this week’s high of 92.1. With risk appetites starting to show improvement, silver may continue to gain on gold over the near-term. The PGM sector saw mixed results Thursday with palladium prices falling under platinum prices for the first time since 2018, and both PGM metals are under moderate early pressure this morning due to concern over Asian and European auto catalyst demand. The dollar put together a mild rebound that has been extended into today’s trading that continues to pressure metals prices. Gold ETF holdings increased 21,293 ounces yesterday, breaking a 15-day streak of declines, reflecting the lukewarm investor demand that has weighed on gold prices.
COPPER
Copper prices have been unable to overcome Chinese demand concerns this month. Negative year-over-year Chinese inflation readings included a 15-year low for CPI that has further eroded China’s near-term demand outlook. In addition, the seventh consecutive weekly increase for Shanghai exchange copper stocks put additional pressure on copper prices, offsetting some pre-holiday strength see in Chinese equities. LME copper stocks were unchanged early today, but after twelve daily declines in a row, and have reached their lowest levels since September.
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