Written Commentary
GOLD / SILVER
Gold and silver moved higher overnight, as sharply higher crude oil prices added to concerns about inflation. The bulls can take some comfort in the fact that prices did not sell off in the face of hawkish comments by the Fed president and various Fed members this week. Treasury rates have jumped, but unlike previous moves, this did not bring a wave of selling to the metals.
PALLADIUM / PLATINUM
The Ukraine war provides underlying support to palladium, as Russia is a major producer. However, a spree of Covid shutdowns in China is threating to undermine industrial production there (computer chips last week, steel this week), which could slow auto production and demand for auto catalysts.
COPPER
Copper prices continue to see volatile action this week with a strong close yesterday and a move its highest level in more than two weeks this morning. A pullback in Chinese equity markets as well as new COVID lockdowns have raised concerns about near-term demand, but Chinese imports of scrap copper for January and February were higher than last year.
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