Written Commentary
GOLD / SILVER
While February gold managed to hold above yesterday’s spike low overnight, prices remain pinned down to those lows and should find modest outside market support from $80.00 plus oil and from a weaker dollar. Gold and silver should also find support from a significant jump in euro zone inflation. In fact, euro zone consumer inflation reached 5% which is a record high and in turn probably added to the big jump in euro zone retail sales.
PALLADIUM
The palladium market yesterday saw a range down move, but the trade quickly rejected that slide and at times the market was trading $51 above its low for the day. The brunt of palladium demand news this week was negative from claims, housing, and vehicle sales.
COPPER
While the March copper contract managed to reject an 11-day low yesterday, the market did reject a moderate portion of that slide leaving the $4.31 level as some form of value/support. However, the copper slide came in the face of positive Chinese services PMI readings for December and in the face of a renewed pattern of declining LME copper warehouse stocks.
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