Written Commentary
GOLD / SILVER
Unfortunately for the bull camp, the tensions in the Middle East have been completely countervailed by a recovery in the dollar and by higher US rates. However, the potential for a disruption of oil supply chains has sent crude oil above $85.00 overnight in a fashion that foments inflationary expectations. Not surprisingly, the silver market has seen the same damage chart position as gold with little in the way of support seen until $22.68.
PALLADIUM / PLATINUM
At least in the early action today the palladium market has avoided the pressure seen in gold and silver because of rising treasury yields and strength in the dollar. Furthermore, the PGM markets are discounting what could been a very negative development from South Africa, where their PGM production in November apparently jumped by 38.1% versus year ago levels. The platinum market appears to be under more pressure than palladium because of the overnight news of increased South African PGM production.
COPPER
Not surprisingly, the copper market is under pressure today because of a big picture macroeconomic risk off environment created by surging oil, a higher dollar, lower equities, and rising interest rates. While a rear looking view, it should be noted that Chinese 2021 copper exports posted a record last year and LME copper warehouse stocks have halted their dissent seen throughout most of last year.
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