Written Commentary
GOLD / SILVER
While Ukrainian forces appear to be holding up impressively against the Russian onslaught, reports of Russian reinforcements from a 40-mile-long column of Russian vehicles suggest a massive artillery bombardment will ensue ahead of the arrival of the massive supply convoy. In a positive overnight development for gold and silver prices, China saw better-than-expected February purchasing manager readings with economists suggesting that improvement was the result of policy support.
PALLADIUM / PLATINUM
The palladium market ranged higher and has extended this morning in a fashion that suggests the February high up at $2,721 could be challenged this week. Forecasts by Goldman Sachs of significant price appreciations in commodities reliant on Russian sources, should leave the PGM markets with a strong bid especially if the world goes sanction crazy in last ditch attempts to discourage a mass attack from Russia.
COPPER
We see the copper market vulnerable to long liquidation ahead as a physical commodity fearful of demand destruction. Certainly, copper could rally in the event of a significant surge higher in energy prices, but the copper market could also fall precipitously from fears that surging energy prices will put the brakes on the global economy. In positive Chinese demand developments overnight, Chinese manufacturing PMI readings overnight came in stronger than expected and China saw 2021 energy consumption reach a decade high, which in turn should suggest their industrial demand for copper remains strong.
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