Written Commentary
GOLD / SILVER
There has been notable divergence in precious metals with gold holding within its 2024 consolidation zone while silver is still within striking distance of a new 4-month low. The gold/silver ratio was just above 92 at yesterday’s close and approaching the 17-month high reached in mid-January. The dollar remains well below Monday’s 2 1/2-month high which has underpinned metals prices early today. Fed speakers gave mixed comments on upcoming Fed policy yesterday, however, and the market’s disappointment that there was not an overall dovish tone has weighed on gold and silver prices.
COPPER
Copper prices continue to face headwinds from Chinese demand concerns, but they have gotten past critical Chinese data early today without sliding to a new 3-week low. The twelfth daily decline in a row for LME copper stocks provided underlying support for copper prices as that shows some improvement with global demand. Chinese equities have a long way to go to fully recover from losses, but a third daily gain in a row is a step in the right direction. Copper has been able to overcome a sixth weekly increase in a row for Shanghai exchange copper stocks which has reached their highest level since June, as well as the disappointing results for January Chinese CPI and PPI.
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