Written Commentary
GOLD / SILVER
A headline from Reuters overnight highlights the dichotomy in the gold market as it suggested gold is headed for its 4th weekly loss off “inflation jitters”. In other words, the fear of inflation is “pressuring” gold. Expectations for the November US CPI call for a gain of 0.7% and that apparently has the gold market fearful of action from the Fed.
PALLADIUM / PLATINUM
While the palladium market managed to reject more than half of yesterday’s initial aggressive downside washout, the charts this morning have shifted back in favor of the bear camp. In fact, news of an increase in South African PGM production puts the supply-side of the equation in the Bear’s favor.
COPPER
In our opinion the primary force holding up copper prices over the last 35 days has been the persistent evidence of tightening global exchange warehouse stocks. Therefore, seeing both LME and Shanghai copper stocks increase by 3,850 tons and 5,270 tons respectively deals a significant blow to the bull case. It also seems as if the press continues to trumpet the difficulties in the Chinese property sector thereby curbing expectations for Chinese construction and in turn reducing some copper demand expectations.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
