GOLD / SILVER
Gold drifted lower overnight as there appeared to be no compelling reason to own the metal. There was a rebound in risk sentiment early Wednesday on a report out of Israel that the vaccines appear to be effective against the Omicron variant, and there were further positive statements overnight from the Pfizer CEO, but that mood was undercut by the report of the first case being in the US and by more hawkish statements from Fed Chair Powell. March silver was near unchanged overnight after it crashed through Tuesday’s lows and fell to its lowest level since October 6 on Wednesday.
The PGMs were mixed overnight, consolidating inside Wednesday’s ranges. They found modest support from the boost in risk sentiment on Wednesday but failed to make much progress towards recovering from the recent selloff. The stock market gave up its gains as the session progressed, and this seemed to drain support from palladium and platinum.
Copper has held its ground above the mid-November lows this morning, but it has been put back on the defensive in the wake of Wednesday’s selloff. A disappointing Caixin Chinese manufacturing PMI reading yesterday, which fell below the key 50.0 level put pressure on the market early on ideas that it implies softer Chinese 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.