Written Commentary
GOLD / SILVER
A noted correction in gold and silver prices this morning is not surprising considering yesterday’s very significant gains. Some buyers of gold think Russia will see a financial collapse as official and unofficial sanctions pileup, but news that China will continue to buy energies from Russia certainly pushes back any collapse of the Russian economy. Cushioning the gold market today is weakness in the dollar which this morning reached nearly 100 points below the Monday high. The silver market has also forged its gains on increased trading volume and higher open interest.
PALLADIUM / PLATINUM
The strength of the palladium bull market is evident this morning with the market tracking sharply higher again in the face of a very minor glimmer of hope on the ability to negotiate with the Russians as they are apparently allowing humanitarian “corridors” for Ukrainians to leave the country. It is also impressive for palladium and platinum prices to be tracking higher this morning in the face of weakness in crude oil, gold, and silver. With the platinum market owing its strength to palladium, a temporary correction in palladium could result in a noted platinum retrenchment.
COPPER
With the LME reporting speculators boosted their bullish copper bets recently, the reversal from this week’s highs was likely facilitated by technical stop loss selling.
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