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Palladium at Multi-Decade High

GOLD / SILVER

The gold market is not tracking higher early this morning despite a bullish demand story from the China Gold Association. Apparently the association pegged Chinese Q1 demand to have jumped by 93.9% on a year over year basis. The precious metals had volatile price action over the two previous sessions, and were unable to retest last week’s high as the markets faced headwinds from several directions. As a result, gold and silver may finish April on a downbeat note.

PALLADIUM / PLATINUM

While the PGM sector saw divergent price action during Thursday’s session with palladium continuing to hold the upper hand on platinum as it reached a new multi-decade high both markets are tracking higher this morning. Palladium’s ongoing supply shortage concerns come at a time that US motor vehicle sales (particularly in the light truck category) have been rising to pre-pandemic levels. A global chip shortage has led some automakers to suspend production on some lines, but it may be summer before car dealerships have shortages of new vehicles to sell.

COPPER

Despite a series of records this week the copper market appears to have stalled after gaining the $4.50 level. Copper prices up over 12% for the month and posted a negative key daily reversal on Thursday and therefore early action today could set the pattern for the session. Apparently the market did not see the Chinese PMI readings as definitive as prices did not show reaction to what should have been a major set of numbers.

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