GOLD / SILVER
Gold ETF’s yesterday added 127,373 ounces bringing this year’s net purchases back up to 27.7 million ounces. With the silver market into the overnight high sitting roughly $2.75 above last week’s low and sitting $1.50 above the 100-day moving average it is obviously vulnerable to a wave of stop loss selling especially given the negative commodity/deflationary condition in place this morning. Fortunately for the bull camp, silver ETF’s yesterday added 6.39 million ounces to their holdings with that increase the biggest one-day gain since August 25th.
PALLADIUM / PLATINUM
With palladium prices holding near yesterday’s highs in the face of broad market deflationary/fear of slowing psychology, it would appear as if the market is focusing on better-than-expected Chinese PMI data overnight. With platinum failing to benefit from positive Chinese data (because it is primarily used in diesel vehicles instead of gasoline vehicles) the bears are confident this morning. Therefore, we see significant resistance at a recent triple high (which coincides with the 100-day moving average) at $896.25.
Given the embarrassing result of the presidential debate and given overnight Chinese economic data it is not surprising this morning to see copper prices trading near unchanged. On one hand, the presidential debate has thrust the markets back into a deflationary/slowing psychology, while the Chinese economic data on its own would have lifted copper prices. In yet another negative, LME copper stocks jumped again overnight, in what many could perceive as a sign of slackening copper demand outside of China.
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.