Written Commentary
GOLD / SILVER
Gold and silver prices have started the new week out firm with gold forging an upside breakout and climbing toward its 200-day moving average up at $1862.90. While Chinese retail sales readings overnight were a little disappointing, news that April Chinese crude steel output hit a record and signs of inflation are popping up throughout Chinese manufacturing industries and therefore the markets start the week out with inflation news.
PLATINUM / PALLADIUM
Last week palladium ETF holdings increased by 7,900 ounces while platinum ETF holdings increased by 22,626 ounces. While the palladium market last week saw a low to high dive of $202, the market saw trading volume fall off on the washout suggesting long profit taking instead of fresh short selling. Like the palladium market, the platinum market also suffered a hard washout last week of $81 and prices have returned to, respected and recoiled from the even number $1,200 level.
COPPER
Despite signs that China is growing irritated with surging material prices and have threatened to restrict production to thwart speculators, steel prices posted record levels on record production. While Chinese retail sales were disappointing Chinese April industrial output increased by 9.8% relative to estimates of 10% and that report provides fodder for ongoing strong Chinese copper demand.
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.
