GOLD / SILVER
The opening prices in gold and silver this morning fail to tell the tale of the overnight action as both markets exploded on the charts and then relinquished a large portion of those gains. In fact, as of this writing, the gold market is trading $16 below its overnight high while the silver market is trading an astounding one dollar below its overnight high. Gold ETF holdings yesterday increased for the 18th straight day, with the addition of 465,247 ounces. Similarly, silver ETF’s added 4.2 million ounces to their holdings bringing this year’s net purchases close to 230 million ounces.
PLATINUM / PALLADIUM
Like the gold and silver markets, the platinum market overnight also exploded higher but then failed to hold all-of the gains. The bull camp in the palladium market should be disappointed with the overnight action as the market failed to make a new high. While not a recent bull factor for PGM prices, the PGM ETF’s yesterday saw withdrawals suggesting that investment interest is not building along with futures price gains.
While the September copper contract did make a 7 day high overnight, the market appears to have been knocked back by the sudden eviction of the Chinese consulate in the city of Houston. However, the market should be underpinned as-a-result of backwardation signals, ongoing declines in daily LME copper warehouse stocks (LME stock levels are nearing the lowest levels in 12 years), a drop in quarterly copper production at Antofagasta (down 8.4%) and from evidence of an expanding world refined copper deficit in April from the International Copper Study Group 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.