Since the huge $250 an ounce decline in mid May I don’t trust this market. I think further declines are ahead for platinum although prices could rise nominally from here. We are not short but are sitting on our hands waiting for a buying opportunity perhaps this fall.

Since the “flash crash” in the stock market last month there is a pronounced danger of institutional deleveraging in all commodities markets. It may not happen and we hope it doesn’t but the concern is very real. It is a fact of life that funds and institutional traders are the major players in commodities. If the selling bandwagon takes off there is no telling how much technical damage can be done. It could be 2008 all over again. For now all eyes are on the stock market as an indicator of major sentiment. Eyes only, from the sidelines.

Initial support comes at $1456.00. Next support level $1036.00. Be warned!

New York afternoon session for June 3, 2010

July platinum:  $1,542.90, down $7.50; Range $1,541.20-$1,568.10

September palladium: $450.80, down $2.50; Range $447-$464.95

July copper: $2.9375, down $0.940: Range $2.9255-$3.0845

August gold:  $1,210, down $12.60; Range $1,202.40-$1,226.50

July silver:  $17.931, down 38.4 cents; Range $17.825-$18.475