Written Commentary
GOLD / SILVER
It is somewhat surprising to see gold tracking higher this morning in the face of weakness throughout commodities and more specifically in the face of a resurgent Dollar. In fact, the charts in the dollar appear to be poised for a fresh contract high during today’s session and without an extremely hot German producer price index reading for October overnight and word of a massive Japanese stimulus package, gold longs would have been feeling significant pressure. The action in the oil market is likely to remain a key focus of gold and silver with the action in the dollar likely to regain its importance later today.
PALLADIUM / PLATINUM
With a big range reversal after new high for the move yesterday, a precipitous decline in open interest, and downside follow through this morning the palladium market appears to be vulnerable to a near term setback below $2,100. The platinum market tracked lower with the palladium market yesterday and with the gold market yesterday in a fashion that suggests it will fail today at the $1,050 level on the charts.
COPPER
While the copper market saw predictions of further Chinese slowing from the Chinese version of the US Beige book, the dollar is surging, and equities are mixed, the copper market has ranged upward and posted a 3-day high. We suspect copper is benefiting from a pair of copper exchange stock declines posted this morning, with London stocks falling by a very large 7,725 tons and Shanghai weekly copper warehouse stocks down by 3,119 tons.
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.
