Written Commentary
GOLD / SILVER
Precious metals have kept within fairly tight range so far, but are maintaining upside momentum with gold climbing back above the 200-day moving average and silver reaching a 3-week high. While initial gains in gold and silver prices Tuesday were likely from of a downside reversal in the dollar, we suggest they probably drafted some from a risk on equity vibe. In other words, gold, silver, palladium, and platinum behaved like classic physical commodities seeing an improvement in demand.
PALLADIUM / PLATINUM
The PGM metals have been able to shake off early pressure and have climbed back into positive territory, with platinum regaining the upper hand on palladium as it reached a 3-week high. With March palladium hitting its highest trade since November 26th yesterday, it is possible that the trade is embracing the risk on argument that omicron may have less of an impact as prior variants. Not to be left out, the platinum market also surged higher Tuesday in a move likely associated with the broad-based risk on psychology.
COPPER
After reaching a 4-week high early in the day, the copper market has turned back to the downside and has fallen into negative territory coming into this morning’s action. There are reports that a Peruvian village lifted its blockade to the Las Bambas mine, while news that 3 doses China’s Sinovac vaccine may not be effective against the Omicron COVID variant have put pressure on the copper market early in today’s action.
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.
