Good Morning,
The seesaw in the commodity market
continues today as the whole complex is lower on the back of the
stronger US dollar against the Japanese Yen and Euro currency. Not much
news in the market today. There are 2 camps out there when it comes
to gold, those that think the stronger dollar and an early end to QE
will drop the gold price significantly lower and those that believe the
FED and Central Banks will be in the QE game for the foreseeable future
and are keeping their gold position as a hedge.
Forget the other “noises” when it comes to shortage of metals and labor
situations in South Africa since metal prices have been hijacked by
funds and other trading houses actively trading their positions causing
wild swings in PGM prices. Any metal shortage
is temporary and we have seen plenty of physical metal in the market
place. In the absence of stronger economic data out of China and Euro
Zone, we expect to see lower PGM prices once it breaks the recent
trading lows. We see a short term bounce back in gold
and silver prices until we can confirm the dollar strength is for real.
For those heading over to London for PT week, have fun and be safe.
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