Written Commentary
GOLD / SILVER
Despite another upside extension in the dollar index overnight, December gold prices remain within striking distance of this week’s range up high. The bull camp enters the last trading session of the week confident following bullish comments on gold from both UBS and Goldman.
PLATINUM
While the PGM markets have not benefited significantly from the current inflationary bulge, the palladium market has built a considerable consolidation above the $2,000 level on the charts and has seen open interest build significantly following the washout last month. Adding into the upward bias in palladium is news that South African PGM output in September declined by 7.5%. Clearly, the platinum market is the leadership market within the PGM complex as it surged on Wednesday and returned to the $1,100 level again in Thursday’s trade.
COPPER
Copper should be supported because of another decline in daily LME copper warehouse stocks of 3,875 tons but could be partially disappointed in a very minor 555 ton increase in weekly Shanghai copper stocks. In another limiting development overnight iron ore prices continue to plummet, indirectly dampening bullish sentiment toward copper and other heavy industrial materials.
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.
