Written Commentary
GOLD / SILVER
With a fresh high for the move and the highest trade since March 22nd in June gold, the bull camp extends its suspect control into another trading session. The May silver contract also forged a higher high for the move, but the magnitude of the higher trade fails to depict a market with sustainable momentum. Not surprisingly, gold ETF holdings declined for 13th straight day yesterday, with year-to-date holdings now down 6.8%.
PLATINUM / PALLADIUM
The bull camp in the PGM markets is likely deflated this morning given the markets lack of upside action in the wake of bullish analyst commentary overnight. In fact, UBS reduced palladium mine supply this year by 545,000 ounces and projected a deficit of about 1 million ounces. In a significant longer-term development, the market has begun to factor in a shift in auto catalyst consumption of palladium toward platinum (next year) because of the historically wide price differential of $1400 an ounce.
COPPER
Overnight news coverage labeled the copper market as “tired” and we concur with that assessment. Furthermore, copper price action seems to be mirroring the ebb and flow of economic expectations for the Chinese economy and while recent Chinese data has picked up, many data points have been disjointed signaling a waffling economy.
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.
