Written Commentary
GOLD / SILVER
It would appear as if a better-than-expected sweep of preliminary euro zone factory and service PMI readings for March have sparked a risk on commodity market rally, which in turn has lifted gold and silver modestly. Unfortunately, investors continued to be cool toward gold and silver, with gold ETFs yesterday dropping for 27th straight day and silver seeing a liquidation of 2.5 million ounces.
PLATINUM / PALLADIUM
While the palladium market at times showed signs of regathering the bullish tide from last week, the market basically spent the Tuesday trading session within the prior range and waffling around both sides of $2,600, which suggests that the bull case is moderating. While an overnight inflow of 7,649 ounces into Platinum ETFs yesterday shows an increase in investment interest in platinum, the market lacks bullish buzz and prices have declined in the face of very impressive gains in palladium.
COPPER
Obviously, the copper market is drafting lift from the favorable sweep of European PMI data, but the market also appears to be catching lift from strength in most commodity markets. However, to see copper move above consolidation resistance probably requires a resurgence of positive economic readings from China unless today’s US durable goods report clearly displays noted resiliency of the US economy.
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