Written Commentary
GOLD / SILVER
With the gold and silver trade early yesterday falling in the face of sharp declines in the dollar and a brief respite from rising treasury yields, bearishness has become entrenched. Therefore, with the dollar posting a fresh contract high overnight, treasury yields notching higher again, and all actively traded commodities trading lower, the bear camp has a decided edge.
PALLADIUM / PLATINUM
With the palladium and platinum markets slumping yesterday and again this morning, the PGM markets appear to be discounting the war in Ukraine, discounting inflation, and perhaps factoring a slight amount of slowing in the global economy. In another minimal negative for platinum and therefore palladium prices, the beleaguered South African utility has reduced its electric supply threat notice level, meaning the impact on production has and might be nil.
COPPER
While the net impact from copper exchange warehouse flow news this morning should be slightly bullish, copper feels heavy and a return to this week’s lows is likely early today. Fortunately for the bull camp a large daily LME copper warehouse stocks inflow of 7,275-tons was significantly offset by a 21.2%, 18,827-ton decline in Shanghai copper warehouse stocks.
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