Written Commentary
GOLD / SILVER
It is difficult to determine the primary bullish force serving to lift gold and silver prices this week, but we suspect that persistent resiliency in US treasury bond and note prices (lower yields) is at the top of the list. However, it is also possible that uncertainty on the economy (US data has been disappointing, the delta variant is increases infections significantly and the Fed chair has indicated the economy is not where they would like to be) providing a measure of uncertainty/flight to quality buying interest.
PALLADIUM / PLATINUM
While the palladium market should be supported as-a-result-of positive Chinese top-tier economic data for June, the market should be undermined because of a large outflow from palladium ETFs yesterday of 9,964 ounces which brings down the year-to-date gain to 8.7%. With another higher high for the move and the highest price since June 16th overnight, it appears that the platinum market has gained leadership over the palladium market and has upside follow through potential.
COPPER
Despite top line Chinese economic data coming in positive against expectations for soft data, the copper market has only forged very modest gains to start the Thursday trade. However, the bull camp was dealt a blow by news that China has reduced steel production significantly because of slack demand.
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