Written Commentary
GOLD / SILVER
With the dollar showing weakness overnight, energy prices regaining their footing and most physical commodities trading higher, the path of least resistance in precious metal markets today has shifted up. While not overly significant, gold ETF holdings yesterday increased by 32,983 ounces while silver ETF holdings jumped significantly with an inflow of 3.4 million ounces. On the year, gold ETF holdings are 1.7% higher and silver ETF holdings are 2.3% higher.
PALLADIUM / PLATINUM
Not surprisingly, the issue that served to throw palladium prices $215 higher from last Friday’s low, also caused a significant downside pulse in prices yesterday. In fact, at times yesterday the March palladium contract was $154 lower on the day despite a weaker dollar and a recent net spec and fund “short” positioning. With the platinum market not participating fully in the Russian supply threat in the first place, the amount of disappointment selling yesterday was limited.
COPPER
With copper prices extending the recovery from earlier this week the market is apparently drafting support from comments from the Peoples Bank of China Gov. who promised more support for the struggling Chinese economy. Limiting copper and other base metal prices on the upside are intense Chinese government efforts to squelch surging prices with the Chinese beginning to question “international” (non-Chinese) commodity producers and traders.
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