Precious metals closed last week holding most of the intraday gains as a result of the weak data contained within the Non-Farm Payroll report, which further reinforced the “markets” belief that a rate hike will not come in June. Besides the downward revisions in February and March job creation, hourly wages, which appears to be a figure the “committee” pays great attention to, are not increasing at a pace that would bring the upside inflationary pressures to support higher interest rates. The trading week began yesterday on a steady tone as physical demand continues to pick up throughout Asia. This may have been the result of a surprise cut in the one-year lending rate from the Chinese Central bank which continues to look for ways to stimulate a sluggish economy.
This morning’s big mover is palladium which has failed to continue its recent run higher. After breaking above $800.00 and not moving higher, sellers have materialized and taken palladium back to $785.00. This week begins the schedule for Greece to begin paying back their debt with 750 million Euro due to the IMF tomorrow and larger payments due in the coming weeks. The uncertainty about Greece’s ability to make these payments and the future of the Euro zone as we currently know it should be supportive for our market as we continue to look for direction.