Written Commentary
GOLD / SILVER
Despite news that Country Garden failed to make in international debt payment overnight the US dollar forged a downside extension and posted the lowest trade since September 29th thereby underpinning gold around yesterday’s highs. Furthermore, uncertainty in the Middle East has fostered further short covering in US treasuries removing another outside market pressure from the gold and silver trade. Unfortunately for the bull camp, tonight China will release its new loans tally for September and with expectations calling for a significant jump over August, that news could lift the Chinese currency and in turn moderate Chinese domestic flight to quality buying of gold. On the other hand, the Middle East situation continues to sizzle with airstrikes continuing overnight and Israel providing arms for volunteers along its borders. With the third tier US scheduled the data today unlikely to move financial markets the focus of the gold trade could shift to three Fed speeches starting around midsession.
COPPER
Apparently the “Copper Week” event in London has resulted in a barrage of different opinions on the price of copper in the coming year. In the short-term, a swift rebuilding of extremely tight LME copper warehouse supplies provides significant overhead resistance as does the uncertainty flowing from the Chinese economy. In fact, overnight Country Gardens missed an international debt payment rekindling fears of a contagion in the Chinese real estate sector. On the other hand, the industry event in London has seen several very bullish forecasts from industry experts, but those bullish experts were largely left to explain why their projections of higher copper prices did not materialize this year.
Interested in more futures markets? Explore our Market Dashboards here.
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.
