Written Commentary
GOLD / SILVER
While the expectation of inflation has not been consistently embraced by precious metal market it would appear a measure of inflationary sentiment is serving to lift commodity prices this morning. The source of the inflationary spark is the surge in energy prices following the inability to reach a deal for returning production withheld by OPEC plus members.
PALADIUM / PLATINUM
The PGM markets are also rising aggressively this morning with a positive spillover from surging energy and other precious metal prices. In retrospect, the palladium market corrected its overbought condition from the historical price action in early May, with open interest falling precipitously and trading volume all but drying up into the recent lows.
COPPER
Like many other physical commodity markets, the copper market has started the holiday shortened trading week out with a significant upside breakout and a 13-day high. According to overnight press reports, copper was partially lifted by a surge in fund buying off inflationary interest, but we also suspect that some of the buying was technical in nature.
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