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Copper Higher Despite Disappointing Data

GOLD / SILVER

While it appeared as if gold and silver yesterday were seeing inflation related buying that argument is discounted this morning with gold and silver lower in the face of strengthening energy and grain prices. However, precious metal markets are clearly being undermined as a result of what appears to be a developing uptrend in the dollar index.

PLATINUM / PALLADIUM

With very strong US vehicle sales documented this morning, non-Chinese palladium demand expectations are ramped up. The palladium market enters the Tuesday trade sitting just under all-time high prices with the bull market charging consistently higher without daily evidence of improving demand. With ongoing gains in palladium, the platinum market has been dragged back to the vicinity of 2-month-old consolidation high prices which offers credible resistance at $1248.10 today.

COPPER

All things considered, we were very impressed with the copper market’s ability to shake off a 3-day low yesterday and climb back above $4.50 in the wake of disappointing US manufacturing data. However, the copper market should see support this morning from news that Australian March iron ore exports jumped by 21% from the prior month, as that highlights strength in the global economy and rising demand for industrial materials.

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