Written Commentary
GOLD / SILVER
While April gold failed to hold a new high for the move overnight, the higher high came within striking distance of the highest price of the last 8 months. With the gold market breaking into higher high ground and reaching the highest level since November 18th, the November highs around $1,882.50 could be a feasible target later this week. While the upside breakout in silver has not been as impressive as the breakout in gold the market has a positive chart set up and could make $24.00 support instead of resistance in the coming sessions.
PALLADIUM / PLATINUM
After yesterday’s significant upward thrust in prices the palladium market was more vulnerable than usual to technical corrective action. However, with Russian troops reportedly returning to their home bases the geopolitical threat against supply is moderated and a setback in palladium prices is warranted. As for the platinum market, it also remains locked in a trading range but should be skewed to the upside because of the importance of Russia in producing palladium and platinum for world use.
COPPER
Clearly, the copper trade is emboldened by reports that some Russian troops have returned to their home bases. In fact, yesterday the trade cited the Russian/Ukraine tensions as cause for industrial demand fear and therefore the recovery today is not unexpected. In the bull’s defense, LME copper stocks continue to decline, but that potentially supportive story line is still being countervailed by last week’s massive weekly inflow to Shanghai copper warehouse stocks.
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