Written Commentary
GOLD / SILVER
In a negative psychological development overnight, the Swiss National Bank indicated it had a valuation loss of 1.3 billion Swiss on its gold holdings as that highlights the lack of return for gold over the last 18 months. The World Gold Council is also expecting as much as 200 to 250 tons will be consumed in India from (pent-up demand).
PALLADIUM / PLATINUM
The palladium market has managed to build a base of consolidation support around $1,951.50 but the demand side of the equation is lacking, and supply news has favored the bear camp recently. Like the palladium market, the January platinum contract has begun to construct a consolidation low support zone around $1,008.90.
COPPER
In retrospect, the copper market appears to have found some form of value with yesterday’s low and the attempt to consolidate around the $4.363 area on the charts. Certainly, seeing another hefty decline in LME copper warehouse stocks of 3,475 tons provides support to prices but that is more than countervailed this morning by a very significant 9488-ton inflow to Shanghai copper warehouses.
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