Written Commentary
GOLD / SILVER
A little surprised that gold and silver are trading higher this morning, with the dollar index extending its rally and forging a new high for the move and reaching the highest level since April 6th. Unfortunately for the bull camp, both gold and silver ETF’s yesterday saw noted outflows, highlighting ongoing apathy of investors. While there was a delayed reaction to yesterday’s 15 month low in US initial jobless claims, both gold and silver bottomed shortly after that report with gold forging a $20 rally in 4 hours.
PALLADIM / PLATINUM
Palladium closed lower on Thursday but held most of its gains from its breakout rally the day before. Despite a possible hiccup on the global recovery because of the coronavirus variant, the world’s two largest economies appear to be in a strong place for active automobile demand, which is good for palladium consumption. Platinum was higher on Thursday, but at best it seemed to be playing catch-up with palladium’s (and gold’s) move the day before.
COPPER
We give the edge to the bear camp today, with the dollar showing fresh upside breakout action overnight, China poised to release state metals stockpiles and uncertainty toward the status of the US recovery putting would be buyers off balance. However, it should be noted that the last time China sold from its strategic reserves (2010) prices continued to rally for 8 months.
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