Written Commentary
COPPER
Technical traders are pointing to the first monthly decline in 12 months in copper as a sign of a developing downtrend in prices. If it were not for the stronger than expected Chinese PMI data released earlier this morning the copper market might have sustained its 4-day downside breakout and in turn taken out extremely critical support at $3.9420
GOLD / SILVER
The bull camp in gold and silver are lucky after a strong upside breakout an upside extension in the dollar index failed and the Index fell sharply back overnight. Overall, the markets should be cheered by Chinese PMI readings overnight as that tamps down the fear that the Chinese post pandemic recovery was stalling.
PLATINUM
The PGM markets got a bullish shot in the arm from overnight news that The South African Public investment Corporation investing $7.4 billion in platinum group metals investments with the fund indicating the rally will sustain longer than expected and will likely see more dynamic supply and demand changes ahead. In palladium, traders are watching the Palladium premium over platinum as the spread between the two markets is likely prompting a-number-of smaller manufacturing entities to substitute and that could encourage more platinum usage ahead.
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.
