Written Commentary
GOLD / SILVER
On one hand, both gold and silver prices sit near 4 1/2 month highs, on the other hand, prices over the prior 5 trading sessions have stalled thereby causing some to suggest a solid technical resistance level has been found just under $1891.30 in June gold. Trading volume in gold has declined following a pickup on last week’s major range day, while open interest has also continued to decline and that suggest the brunt of the trade is uninterested in the short side of gold.
PLATINUM / PALLADIUM
While Palladium managed to respect the prior day’s spike low overnight and palladium ETF holdings continue to rise (very slowly +5.2% on the year today) the path of least resistance appears to be pointing downward. As in other industrial commodity prices, the palladium market is a little off its bullish game due to the threat of intervention by China against rising prices, but also because US economic numbers have not shown definitive and consistent forward movement. Surprisingly, the charts in the platinum market are signaling a bottom as opposed to palladium where the trend is obviously down.
COPPER
The copper market showed an initial overnight upside flare in prices with a 3-day high but promptly gave back those gains. However, we see comments from Chinese officials as the least undermining for copper as Chinese officials have directed port authorities to improve import facilities, storage and transportation for bulk commodities, none of which appears to be definitively negative to prices.
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