Explore Special Offers & White Papers from ADMIS

Copper Lower on Demand


Despite building a strong head of steam into an 8 year high yesterday it appears as if the $1800 level stopped the gold rally dead in its tracks. Surprisingly the gold market was not lifted by the weakness in US equities yesterday or by the surging US infection counts in a growing list of states (largely in the West). While some will suggest that renewed strength in the dollar was behind the reversal we would suggest that was a minor contributing factor.


The charts in the palladium market were damaged yesterday with prices remaining near yesterday’s lows this morning (which were the lowest in 14 days). Obviously renewed fears of economic slowing from the virus spread in the US is seen as an indirect demand threat for PGM consumption from the auto sector, but it is also possible that strength in the dollar and spillover selling from the gold reversal are the key driving forces.


While it would appear as if demand threats against are returning there would also appear to be fresh prospects supply risk in Chile from fears of shutdowns due to ongoing infection spread. In fact mining unions in Chile have requested a 2 week shut down for cleaning following infections at a key mine. On the other hand, overnight news saw a prediction that Peru’s largest copper mines will reach back to full capacity next month.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started