Written Commentary
GOLD / SILVER
Gold and silver were moderately higher overnight, but they were confined to yesterday’s range. The war in Ukraine provides flight to quality support to the precious metals, but a hawkish turn in Fed commentary has been negative. Fed President Powell recently indicated that the next rate hike could be 0.5% versus 0.25% previously announced, and the Fed’s Bullard said on Tuesday that the Fed needs to move aggressively on rate increases.
PALLADIUM / PLATINUM
Palladium and platinum were higher overnight, but like gold and silver, they were confined to yesterday’s ranges. The Chinese city of Tangshan has been put under lockdown due to Covid, which raises more concerns about automobile manufacturing, as that city is in a major steel-manufacturing region of China. This could affect demand for auto catalysts, particularly palladium.
COPPER
The copper market continues to see coiling price action, but it has held its ground well above last week’s lows and is finding moderate strength coming into this morning. May copper rallied to a 2-week high early yesterday but fell back into negative territory late in the day to finish with a moderate loss.
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