Explore Special Offers & White Papers from ADMIS

Metals Bound on Upbeat News


A preliminary report out of Israel suggesting that fully vaccinated individuals are protected against the Omicron variant lent support to equities and several commodity markets overnight, including the metals. Clearly, gold, silver, platinum, and palladium are tracking classic physical commodity supply and demand factors, as prices fell yesterday in the face of a flight to quality condition. However, the markets were also undermined by hawkish comments from the US Federal Reserve Chairman regarding the Fed’s need to pivot toward tightening before inflation becomes an issue.


Platinum and palladium also saw some support overnight on the positive vaccine news from Israel and the generally supportive tone in equities and commodities, but this was after some aggressive liquidation on Tuesday. Both markets have been tracking classic commodity market fundamentals as opposed to garnering support from flight to quality.


Copper held within a relatively tight inside-day range overnight, but they its posting gains coming into this morning’s action. The “risk on” mood across global markets has offset any pressure from the Caixin Chinese manufacturing PMI number, which was back below the key 50 level. Surprisingly, the market avoided the significant liquidation that was seen in many physical commodity markets yesterday.

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