Written Commentary
GOLD / SILVER
With the gold market maintaining above its 200-day moving average, the dollar spiking lower and gold ETF holdings increasing for the 7th straight day, the bull camp has significant ammunition to start today. It should be noted that SPDR Gold trust holdings yesterday reached 1 1/2 month highs. Obviously, the gold and silver trade has seen some classic inflation-based buying recently and while trading volume did not pick up on the recent rally, open interest has surged in a sign that gold is back in vogue again.
PLATINUM
The June palladium contract has forged a 4-day high in the early action today and it would appear that the bull camp is back in control. In a minor supportive development, palladium ETFs saw an inflow of 1340 ounces which brings the year-to-date increase in holdings up to 5.2%. The platinum market like palladium definitively rejected an even number level on the charts at $1,200 last week and then finished the first trading session of the new week almost at the midpoint of this week’s anticipated trading range.
COPPER
While the Chinese government continues to threaten to stem commodity price inflation, the primary focus of the trade seems to be on iron ore and steel prices and not necessarily copper prices. Overnight, Chinese copper premiums strengthened, the dollar plummeted, and LME copper warehouse stocks posted a decline, giving the bull camp several themes today. While there continues to be a threat against supply from a potential strike in Chile, the copper market should be cheered this morning by a forecast from the International Wrought Copper Council of an increase in global copper demand of 4.9% for 2021 and a 3.3% rise in demand in 2022.
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