Written Commentary
GOLD / SILVER
With a series of hot inflation readings overnight from the UK and euro zone, the strengthening dollar has not prevented gold and silver from tracking higher in the early action. Going forward the markets could be buffeted without notice by the president’s decision on the next Federal Reserve chairman, as the balance between obtaining full employment and controlling inflation could be different among different leaders. While the December gold contract did forge a fresh new high for the move yesterday, the market failed and forged a modest reversal signal on its charts.
PALLADIUM / PLATINUM
The palladium market was the stalwart performer in the precious metals complex on Monday. However, given the recent record net spec and fund short in palladium, we suspect a portion of the buying yesterday was stop loss buying. Nonetheless, near term upside targeting is seen a fraction above $2,200 and key support is the Monday low down at $2,082.50. While the platinum market did not forge impressive gains like palladium to start the trading week, the charts remain bullish with higher lows and mostly higher highs.
COPPER
Like the gold market, the copper market forged a reversal yesterday which shifts the charts from bullish to bearish. The market is probably put off balance by a rare and significant jump in daily LME copper warehouse stocks of 5,525 tons this morning.
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.
