Written Commentary
GOLD / SILVER
From a fundamental perspective, the gold and silver markets continue to see modest investment and flight to quality demand, but also some buying interest off the potential for inflation buying. Obviously, the war in Ukraine continues to provide a steady flow of flight to quality buying interest, but another layer of sanctions on Russia likely infuriates the Russian leader and that could lead to more volatile actions from Russia and more volatility in gold and silver.
PALLADIUM / PLATINUM
Obviously, the charts in the palladium market are severely damaged with last Friday’s major downside failure. The palladium market was knocked sharply downward last Friday by UBS suggestions that Russian supplies from Nornickel were being redirected which could mean some supply is working its way to the world market. Like palladium the platinum market also broke down on its charts at the end of last week and has returned to the psychological support level on the charts around $1,000 but with platinum prices close to the middle of the trading range forged since last July, selling should thin and the market should respect support at $983.70.
COPPER
With a 3-day low in copper at the end of last week partially undermining the charts, sentiment in the marketplace oscillating between recession, inflation, and Chinese demand fears, volatility looks to extend. However, we see the bear camp with an edge especially with the surge in Chinese infections that began in mid-February continuing its pace well above the daily rates seen since the end of the initial flare in infections at the beginning of the pandemic.
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