Written Commentary
GOLD / SILVER
Gold and silver were slightly lower overnight on a slightly higher dollar, but they held inside yesterday’s ranges. The gold bulls were likely disappointed with yesterday’s action because with the US dollar breaking out to the downside and oil prices at times very strong, we would have expected February gold to have sustained its initial test of $1,810. Some traders are suggesting gold and silver are back into a flight to quality role and that stronger equity prices ahead would justify a return to and below yesterday’s low of $1,789.10.
PALLADIUM / PLATINUM
While the March palladium contract managed to reject initial weakness yesterday, it spent the entire US trading session in negative territory. The market was lower overnight, but it spent the entire session inside yesterday’s range. April platinum edged lower overnight and fell through yesterday’s lows, making it the weakest-performing of the precious metals.
COPPER
Copper has held in a tight range overnight, and despite finding mild pressure it is holding its ground above the three major moving averages. It appears that the market reached a fundamental and technical top with the high on Tuesday at $4.4985. Without broad-based, risk-on sentiment, we see March copper settling back into a consolidation zone between $4.40 and $4.20.
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