Written Commentary
GOLD / SILVER
While gold has not tracked in sync with crypto currencies news overnight that China is cracking down on crypto mining activity that has pressured bitcoin overnight. Apparently, the markets are concerned that China will squash crypto currency acceptance in China but limiting mining might also tighten supply of crypto currencies. While there are conflicting reports as to whether Evergrande has made its interest payment, missing the debt payment certainly provides a measure of flight to quality buying interest in gold today.
PLATINUM / PALLADIUM
Both PGM markets saw spillover selling from gold yesterday, and we expect that will continue sometime next week, as gold looks to provide minimal support today because of the Evergrande situation. Fortunately for the bull camp, the recovery-bounce this week was forged on slight uptick in trading volume and only a minor decline in open interest, and therefore the rally might not have been driven completely by short covering.
COPPER
With the copper market forging a significant low to high rally this week of $0.27, significant uncertainty toward the world’s largest consumer of copper (China), disappointing US jobs news yesterday, and a partial risk off global vibe this morning the path of least resistance is pointing down in copper to start today.
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.
