Written Commentary
GOLD / SILVER
While some press outlets overnight label the sharp rally in gold this morning as the result of “deflation”, the inflation set up is very broad and strengthening. Unfortunately for the bull camp in gold and silver, US treasury yields have broken out to the upside again, the dollar is stronger and energy prices are slightly lower to start. Last week gold ETF holdings increased by 507,766 ounces to finish the week up 9% year-to-date! Silver ETF holdings last week reduced their holdings by 2.5 million ounces, but those holdings remain 1.5% higher on the year.
PALLADIUM / PLATINUM
While some economists/analysts are touting deflation this morning, the markets (particularly gold) are signaling inflation as a more predominant force. Therefore, Palladium is supported from the likelihood disrupted Russian exports of palladium will continue with the world still receiving enough physical palladium from black-market supply and or from supplies held previously in the distribution channel. Platinum interest remains absent, and platinum needs large price moves in palladium to lead platinum prices in a sustained direction.
COPPER
Apparently, mostly positive Chinese economic data for March released overnight has provided optimistic copper demand expectations. However, the supply side also provides support with Shanghai copper stocks posting their 4th decline in 5 weeks last week and registering the lowest stocks reading since January 28th.
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