Written Commentary
GOLD / SILVER
While gold and silver prices are slightly lower to start the new trading week, they remain near the recovery highs forged over the prior 2 trading sessions. Obviously, thin trading conditions because of the partial global holiday have restricted ranges but the gold market should see some fundamental support flowing from news that India’s gold imports in March reached a record 160 tons, with retail interest recovering and stimulated by reduced taxes and gold prices nearly $300 below the early 2021 highs
PLATINUM / PALLADIUM
With the platinum market forging a 3-week this morning and diverging with the rest of the precious metal markets early on the bull camp appears to have initial control. However, the rally off last week’s low of $64 was forged on very light trading volume and therefore today’s action will be critical with respect to the level of trade interest at higher price levels. While the net spec and fund long in the palladium market is very modest in size, the positioning is clearly understated by the post report rally of $68.
COPPER
While it might appear to be a delayed reaction, copper prices should be benefiting from last week’s much stronger than expected US nonfarm payroll report as that provides a lift to non-Chinese copper demand prospects. It is also possible that focus on the US infrastructure package is adding to the lift this morning, as that subject dominated the weekend headlines flowing from Washington.
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