Written Commentary
GOLD / SILVER
We continue to see gold and silver as vulnerable to further selling ahead, as damage to the charts has extended overnight and damage to bullish fundamental sentiment this week has been significant. Furthermore, the Dollar is showing signs of strengthening further and it appears that the gold and silver markets retain flight to quality longs likely to exit as political conditions calm down in the US.
PLATINUM / PALLADIUM
With the recent surge toward $1,150 in April platinum, we suspect that the net spec and fund long has now reached the highest level since the week before the initial March US lockdown notice. The palladium market has started the Friday trading session with fresh damage on its charts and a lack of internal bullish buzz and given more weakness in gold and silver prices we give the bear camp an edge.
COPPER
The copper market continues to show very impressive strength even in the face of slack US data, a recovery in the Dollar and less definitive economic optimism/evidence flowing from China. However, the bull camp is assisted by another week of net declines in Shanghai and LME copper warehouse stocks.
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.
