Explore Special Offers & White Papers from ADMIS

Indian Silver Demand Declines


While Chinese gold prices traded higher overnight and Indian prices carved out a very minuscule gain, the US gold market has rolled over and failed to hold at yesterday’s low early on. While the dollar is lower, the charts in the dollar do not give off the impression that the March to early September downtrend is resuming and therefore gold is without that fresh bullish catalyst. However, the gold market should draft a minimal amount of support from the 12th straight day of gold ETF inflows with total holdings now pegged at a very significant 109 million ounces worldwide. The silver market continues to see disappointing demand evidence from reports of slack Indian retail demand and from an extending pattern of daily outflows from silver ETF’s (yesterday’s decline was the 6th straight decline) but year to date gains in silver holdings remain 45% above year ago levels.


While this week’s upward bias is anemic, with a series of minor higher lows the market has failed to take out consolidation high resistance of $2352.50 on several occasions. With open interest showing very little change and volume this week low on the rally it-would-appear that the bull case is not attracting many fresh traders. The upside action in the platinum market this week is more impressive than the anemic gains forged in palladium, but the market has not seen open interest and trading volume confirm the bull track.


Despite the definitive damage on the charts yesterday, minimal declines in LME and Shanghai copper warehouse stocks was disappointing to the bulls and sentiment toward the US recovery was undermined yesterday by US claims data. However, copper is probably seeing some support from news that Chinese loans jumped sharply in August as that indicates economic activity and should facilitate ongoing strong demand.

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