Written Commentary
GOLD / SILVER
With a fresh new low for the move in the dollar this morning and February gold prices sitting just under yesterday’s new high for the move, the bull camp extends its control into another session. In conclusion, another average auction result and or a soft auction will thicken resistance over gold and weaken support under gold. While the upward track in silver might continue from sheer momentum alone, the typical measure of an overbought market is not yet flashing red. Fortunately for the bull camp, open interest and trading volume has increased on the past two days upside action in a sign of widespread bullish interest in the silver trade.
COPPER
Despite concerns of reduced supply flow to China from the port blockade in Panama, copper prices this morning posted a three-day low and appear poised for further downside action. At the same time Peruvian copper miners at Las Bambas are planning to strike against MMG for bonuses on copper sales and yet that has not reversed the pattern of weakness from last week’s high. While European consumer confidence indicators rose overnight demand views at present are not strong enough to support prices against more erosive action.
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