GOLD / SILVER
As we expected the uncertainty on the outcome of the election has extended beyond the close of voting and into the next trading session. Flight to quality buying potential remains in the offing for gold and silver in the hours ahead but as we have been suggesting for several sessions that bullish theme is fraught with the potential for sudden dissipation. In other words, we continue to see gold and silver as classic physical commodity markets that require forward movement in the global economy to rally.
PALLADIUM / PLATINUM
Not surprisingly, the palladium market benefited from the Tuesday extension of the late Monday rally in equities. While the palladium market earlier this week discounted favorable economic data as a signal of improving physical demand, the market might have seen some modest support from overnight news that Chinese Services PMI for October came in more than two points above September. The 21-day moving average in platinum up at $2,351.60 is a target for the bulls and a key pivot point while a failure below $2,198.50 could be-seen-as a trend reversing trade. Even the platinum market benefited from the risk on event during the US election day rally in equities but that bullish influence appears to have waned this morning.
The copper market was not impressed with the improvement in the Chinese services PMI reading for October overnight and that suggests the market is currently distracted from the ebb and flow of Chinese copper demand influences and instead focused on to the uncertainty facing the US economy from its election.
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.