Written Commentary
GOLD / SILVER
Gold and silver stabilized overnight after Monday’s steep selloff, with the markets trading in relatively narrow ranges relatively close to unchanged. The exceptionally wide ranges on Monday suggest that the markets could be range-bound over the next few sessions. The dollar saw some additional, modest gains overnight, and this could pressure the metals if the dollar rally picks up steam.
PALLADIUM / PLATINUM
September palladium sold off on Monday in an apparent delayed reaction to the weaker dollar and lower moves in gold, silver, and platinum. Friday’s strong jobs report should have been good news for automobile consumption, but demand for auto catalysts like palladium, which are used in the manufacture of cars, has been curtailed by shortages of other inputs such as computer chips.
COPPER
Copper prices continue to be pressure by global demand concerns and a stronger Dollar, but they have found some support overnight. September copper broke out of its consolidation zone and reached a 2 1/2 week low on Monday before finishing with a heavy loss, but it has held within a tight range so far today. There were reports that workers at Chile’s Caserones mine will walk off the job today and that wage negotiations at the major Escondida mine have been extended for a day, ramping-up South American supply anxiety.
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