Explore Special Offers & White Papers from ADMIS

Prices Decline in Silver


Gold and silver have started off on a softer footing this morning, probably because of another upside extension in the US dollar. In fact, the US dollar has now reached the highest level since August 12th and it should be noted that the dollar recovery from a 4-month slide into August 12th coincided with the largest 4-day washout in gold this year (-$200)! While the silver market also showed a definitive reaction off yesterday slide below $26.45, the market is confronted with negative charts this morning, negative spillover from gold, signs of slack Indian retail silver demand, ongoing strength in the dollar as well as a 4th straight day of outflows from silver ETF holdings.


The action in the palladium market on Tuesday should be very discouraging to the bull camp, as strength in gold, silver and platinum failed to cushion December palladium against a noted washout. In fact, the palladium market has not seen spillover lift from very bullish platinum fundamental supply and demand deficit projections. However, the World Platinum Investment Council has suggested it is possible that platinum might finally begin to take some industrial demand away from palladium due to the dramatic price differential.


With the December copper contract this morning remaining in the bottom half of yesterday’s reversal range, a new high in the US dollar, soft Chinese consumer price inflation readings overnight and the sudden halt of a late stage virus study, that leaves the bias in copper today pointing down.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started