Written Commentary
GOLD / SILVER
In looking at the quote board this morning the gold market is one of the few physical commodity markets trading in negative territory in the face of a significant risk on reaction in global equities. However, we suspect selling in gold will be modest as strength in oil prices, the potential for Russian aggression and weakness in the dollar should provide cushion.
PALLADIUM / PLATINUM
With US total light vehicle sales in November coming in slightly below the prior month at a 12.9 million annualized rate the palladium market is facing some demand headwinds this morning. Keep in mind, that that Russian PGM companies have taken control of certain palladium and platinum “funds” and Russia is a major producer of PGMs. Therefore, an economic boycott of Russia could become a very bullish supply-side issue for palladium and platinum.
COPPER
With China cutting its reserve rate requirement, strong global equity market gains, favorable Chinese copper import data, another noted decline in LME copper warehouse stocks and a 7-day high early the bull camp has control to start today. If there is disappointment among the bull camp this morning it is with the magnitude of the gains in copper this morning following the sweep of bullish fundamental and outside market action.
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