Written Commentary
GOLD / SILVER
While there is a bit of divergence between gold and silver in the early going today, net changes are not significant and indicative of a strong bias in the marketplace. After all, the chatter regarding a shift into a rising central bank rate environment is offset by the cut in interest rates by China overnight.
PALLADIUM / PLATINUM
With the palladium market yesterday forging the 2nd largest daily run up in the last 14 months, ranging sharply higher again overnight, regaining the psychologically important $2,000 level, embracing threats against Russian supply flow (if Ukraine is attacked and sanctions are levied) and given forecasts of recovering global auto production, the bull camp has a full quiver of bullish arrows. Not to be left out, the platinum market also forged its most significant rally in the past 14 months yesterday.
COPPER
With copper joining the broad-based physical commodity market rally yesterday and adding to the upside again today without broad-based bullishness elsewhere the bull camp should be given some respect. However, the People’s Bank of China followed through on easing expectations with a modest reduction in interest rates overnight and that could provide copper the impetus to extend yesterday’s rally and regain the $4.60 level.
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