Explore Special Offers & White Papers from ADMIS

Gold And Silver See Modest Gains


While we see gold prices clawing out more modest gains ahead, we are highly suspicious of significant gains unless market sentiment regarding omicron being less severe are proven correct. In fact, investors remain cool toward gold, with ETFs showing a 7th straight day of outflows and Hong Kong November net gold exports to mainland China down 16% on a month over month basis. The March silver contract showed significant volatility yesterday but forged the highest trade of the month of December and closed above the $23.00 level on the charts.


While the PGM markets yesterday saw initial strength, both markets failed to sustain and closed lower on the day to start the trading week. While Russian aggression stories have not surfaced in the headlines recently, we see that issue remaining an underpin for prices going forward. As in silver, low trading volume and falling open interest on the 2nd half of December rally in palladium could be explained as holiday thinned activity instead of a lack of bullish breadth.


In our opinion, the copper market was lifted yesterday because of fresh hope for additional Chinese stimulus and despite more liquidity injection news overnight the copper market is tracking lower to start today. However, the copper market was also lifted yesterday because of definitive risk on sentiment flowing from equities and given additional gains in equities this morning speculative buying interest should cushion copper against further corrective 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.

Latest News & Market Commentary

Explore Special Offers & White Papers from ADMIS

Get Started