Written Commentary
GOLD / SILVER
With a significant downside reversal in the dollar overnight precious metals markets have responded with moderate gains. Yesterday gold ETF’s saw an inflow of 15,859 ounces while silver posted a withdrawal of 338,139 ounces. Gold and silver saw significant buying back in the middle of April when treasury yields broke out to the downside despite data that ordinarily would have pushed yields higher.
PLATINUM / PALLADIUM
The palladium market is negatively diverging with the rest of the precious metal markets this morning, and the charts have shifted bearish with a 3-day low and a pattern of lower highs and lower lows unfolding this week. Palladium ETF’s yesterday saw an outflow of 2501 ounces, while platinum ETF holdings posted a very minor inflow. The platinum market saw its charts shift negative following what is likely a near term (temporary) blow off top rally early this week.
COPPER
While the copper market has not forged another contract high in the early going today the market should see copper demand expectations raised following tonight’s Chinese trade data. Furthermore, copper should be cheered by surging Asian iron ore and steel prices with at least 9 other commodity markets forging 8-and-10-year highs as copper is no longer one of the few physical commodity markets surging higher.
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.
