Written Commentary
GOLD & SILVER
At least in the early going a higher gold trade in the face of an 11-day high in the dollar suggests the bull camp retains some bullish capacity. The gold market should draft support from a World Gold Council report highlighting increased central bank gold holdings for the month of May. India one of the top 2 biggest gold consumers increased its gold holdings in April by only a fractional 0.9 tons. In another negative, yesterday gold and silver saw price divergence with silver making significant gains relative to gold.
PALLADIUM & PLATINUM
The relative action between palladium and platinum remains very surprising with Russian palladium exports in a very uncertain state and the threat of loss platinum supply from Africa tamped down by recent broad wage deals. In other words, the recent divergent action between palladium and platinum seems to fly in the face of classic fundamental analysis. On the other hand, supply concerns in platinum have been lowered significantly following recent wage deals with several mining unions and mining companies. Therefore, with South Africa providing 68.3% of world platinum supply, the threat against future platinum supply is reduced.
COPPER
With the copper market extending the prior 2 sessions significant declines and, in the process, piercing the key $4.40 pivot point on the charts, the bear camp has control to start the Tuesday trading session. Surprisingly, the market was not supported because of the massive 20,200-ton single day outflow from LME copper warehouse stocks.
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