Explore Special Offers & White Papers from ADMIS

Slowing Econ Has Silver Lower


Silver prices are lower in response to recent economic reports that are suggesting the economy is slowing, which will likely limit industrial demand for silver. Potentially offsetting weakening industrial demand is the increasing probability that the Federal Reserve may pull forward a pivot to accommodation.

Silver coins


The longer term supply and demand picture remains supportive, since silver is headed into its fourth consecutive year of deficit in light of tightening supplies, with stockpiles tracked by the London Bullion Market Association falling to the second-lowest level on record in April.


Gold prices declined today after two days of higher prices. Yesterday, data showed that U.S. manufacturing activity slowed for a second consecutive month in May, while construction spending unexpectedly declined in April. This further increased speculation that the Federal Reserve has room to lower interest rates this year.In addition, the European Central Bank is expected to lower interest rates this week, while the Bank of Canada is also anticipated to ease policy soon. Traders are now looking ahead to Wednesday’s ADP employment report and Friday’s May non-farm payrolls data.

Pressure on the gold market is likely to be limited in light of increasing geopolitical risks in the Middle East due to the safe-haven appeal of gold. Also, underpinning the gold market are reports that central banks increased their gold buying in April.

The main trend for gold is higher.


Copper futures extended their downturn to the $4.55 level, which is the lowest level since May 9. Much of the recent pressure is linked to evidence of lower demand in the near term. Some of the recent pressure on copper is linked to economic reports in the U.S. that have mostly come in on the weaker side.  Prices, however, remain 17% higher year-to-date due to prospects of shortages in the long term.

The longer term outlook remains supportive in light of copper’s key role in electrification in grid-scale energy storage and data-center infrastructure.


Interested in more futures markets?  Explore our Market Dashboards here.

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