Written Commentary
GOLD / SILVER
The gold and silver markets are starting out softer this morning in the wake of a bounce in the dollar and weakness in a number of physical commodity markets. In other words, it still seems as if the trade holds suspicion toward the gold market rally, as bullish sentiment has not spread and entrenched yet in the press and that is in despite of a 2-1/2-month rally of $125.
PLATINUM / PALLADIUM
From a technical perspective, a fresh new low for the move in palladium today could signal the beginning of another slide with downside targeting pegged at $2,600. While the palladium market is likely out of the line of fire of the Chinese dictate to bring commodity prices under control, the potential negative impact on palladium from Chinese action should not be discounted. The platinum market on Wednesday surprised the trade with a 5-day high and gains in the face of noted losses in palladium.
COPPER COMMENT
The $4.50 level in July copper continues to hold up copper prices. However, certain Chinese physical commodity prices have surged again prompted by iron ore and steel price gains, but also because of concerns that energy supplies might have difficulty keeping up with demand in China in the event of the summer bulge in electricity demand.
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