GOLD / SILVER
The metals markets enter the Wednesday trade under pressure off a combination of lingering fear of higher interest rates, negative investment flows away from ETF’s and prevailing bearish charts. The bearish bias in gold is confirmed by the markets inability to rally despite persistent Fed indications that the Fed and the markets should be patient with low rates until the US economy is producing strong employment.
PLATINUM / PALLADIUM
The PGM markets continue to be held down by weakness in gold and from fears of rising interest rates. The markets have also been undermined as-a-result of soft Chinese data, with China overnight posting a decline in a private services PMI reading for February.
Even though aluminum and steel prices in China surged to 10-year highs overnight, that has not sparked speculative buying of copper this morning. However, the copper market should derive some support from news that Codelco (the world’s largest copper producer) saw production in January decline to the lowest since last July.
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