Precious Metals: April gold closed at $1,379 per ounce on Friday, up $6.60 or 0.5% against the weak dollar in which it is denominated. For the week gold gained around 3%. Gold, as is the case with U.S. Treasuries, sometimes acts as a “safe haven” hedge when equities decline. We continue to prefer the sidelines in gold but once again, for those that must have a precious metal in their portfolio, we prefer silver. May silver closed at $21.41 per ounce, up 22c or 1% also against the weak dollar. The current Ukraine situation is dominating the market place globally and we prefer the sidelines until the “smoke clears”. April platinum closed at $1,469.60 per ounce, down $9.80 and for the week lost 0.9%. June palladium lost $5.70 or 0.7% to close at $773.25 per ounce and for the week lost 1.1%. We prefer the sidelines but once again our preference would be palladium over platinum.
Copper: May copper closed at $2.95 per pound, up 3c on shortcovering after the recent heavy long liquidation over concerns of a slowdown in China. Copper lost 4.2% for the week and for the year so far has declined by nearly 13%. We have favored the short side of copper for some time and would take profits here.
Grains and Oilseeds: May corn closed at $4.84 ¾ per bushel, down 1/4c on profittaking after recent strength tied to the Monday USDA bullish report on reduced carryout. We prefer the sidelines in corn after having been supportive. May wheat closed at $6.86 ¾ per bushel, up 12 3/4c on continued concerns over weather damage and acreage switches to soybeans. We prefer the sidelines after the recent strength took prices from the $5.50 level. May soybeans closed at $13.90 per bushel, down 6 1/4c on continued weakness over sowings gains. We still like the long
Coffee, Cocoa and Sugar: May coffee closed at $1.98 per pound, down 7.95c on profittaking after recent strength tied to the Brazilian drought. During the session coffee traded as high as $2.05.05. We are now on the sidelines in coffee. May cocoa closed at $2,987 per tonne, down $19 also on profittaking after recent strength. Stay out for now. May sugar closed at 17.28c per pound, down 54 points on continued profittaking after possible overbought condition from the 15c level. Brazilian weather continues to play a roll in softs and for that reason we remain on the sidelines.