Written Commentary
GOLD & SILVER
The Fed came through with at 75 basis point increase this month, and Chairman Powell indicated that they may do the same in July, and the metals market responded with a mild rally in the aftermath. The stock market recovered too, and the dollar set back, which indicates the Fed news was met with some relief. Despite the post announcement rally, gold may have a difficult time making significant gains without some “game changer,” such as a significant rally in stocks or evidence that the Fed is not getting inflation under control.
PALLADIUM & PLATINUM
The PGMs were both higher on Wednesday on a relief rally in the wake of the FOMC meeting. The stock market rallied as well, as traders were apparently relieved that the Fed did what was expected, which was to increase rates at a faster pace than previously indicated.
COPPER
Copper prices continue to deal with Chinese demand concerns following the news of a new COVID testing program in Shanghai and slumping global equity markets overnight. September copper had an inside-day range yesterday, closing with a modest gain. A better-than-expected Chinese industrial production reading gave a boost to the demand outlook for copper.
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