GOLD / SILVER
While the gold market has jumped into significant higher high ground again this morning, the silver market appears to be lagging as if prices have become temporarily expensive. On the other hand, the silver market is justified in some sluggishness/pause given that prices in 5 sessions have forged a low to high rally of $4.30. However, in a not so surprising development yesterday, gold ETF’s continued to add to their holdings with a 19th straight daily inflow (382,510 ounces) but the silver inflow of 14.8 million ounces shows that investment demand for Silver ETF instruments is possibly accelerating.
PLATINUM / PALLADIUM
While it is presumptive to suggest that positive PGM ETF inflows have begun in earnest it should be noted overnight that both platinum and palladium saw inflows of relatively notable size given the small size of both futures markets. In fact, the platinum ETF holdings have reached the highest level since April, which could mean investors have “found” a new avenue to invest in the precious metals space.
As goes China, so goes the copper market and the ongoing political battle between the US and China is certainly a development that thickens overhead resistance and could be a catalyst for a price correction. In fact, using the July 13th through July 16th correction of nearly $0.15 (5%) as a tool, we can’t rule out a setback toward the mid-July low of $2.85.
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.