GOLD / SILVER
The gold market has forged a surprise hook up from yesterday’s lackadaisical slide, forged a 4 day high early and appears to be on the cusp of taking out a critical pivot point at $1750. It would appear as if the rise of infections and the rising debate of a return to lockdowns in some states have sparked a modest measure of safe haven buying.
PLATINUM / PALLADIUM
We continue to be bearish toward the palladium market with some idled operations coming back on line and residual fears that a surge in Chinese infections will slow their recovery and in turn limit auto catalyst consumption. In fact, the Chinese noted that the 2nd week of June saw a 17.7% decline in passenger car sales and the Chinese capital has begun to cancel flights, invoke quarantine in certain areas and has shuttered schools again and that increases fears of sagging palladium demand and in our opinion projects September palladium into new lows for the week with a possible ultimate retest of the June low down at $1,832.20
The action in the copper market this morning is very surprising considering ongoing fears of infection problems in Beijing, ongoing infection problems in Texas and in the face of news that the US has threatened Chinese “officials” with penalties because of their imprisonment of 1 million Muslims. Nonetheless the trend apparently remains up and the corrective action into this week’s low certainly helps improve the technical picture.
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.