Explore Special Offers & White Papers from ADMIS

Gold & Silver Prices Extend on Upside


Despite a building overbought condition in gold and silver, prices continue to extend on the upside this morning in what we consider long-term fundamental based investment trading. Evidence of the bulls piling on the trade were seen overnight from Commerzbank overnight predicting gold to reach $2150 in the second half of next year and silver reaching $30 per ounce by the end of next year. In a sign of a developing overbought condition, gold ETF holdings yesterday saw an inflow of 121,463 ounces which is a 0.1% single day addition to total holdings. While we see upside momentum extending into next week, expectations for central bank rate cuts are mostly projected beyond the first quarter next year and at some point, soon the rate cut rally should exhaust. However, gold and silver showed bullish resiliency yesterday in the wake of positive US scheduled data that could have tempered the newfound dovish central bank views in the marketplace. Nonetheless, treasury rates continued to fall, and the dollar remains vulnerable, and that should provide ongoing outside market spillover buying for gold and silver.

gold and silver


While the copper market does not typically see non-Chinese demand developments as a major force, the breath of this week’s global economic paradigm shift toward dovishness and ongoing gains in global equity markets has overshadowed a significant rise in weekly Shanghai copper warehouse stocks of 4,054 tons overnight. Apparently, the markets are not overly concerned about the build in Shanghai copper stocks event though those stocks have built by 16% and 13.4% over the last two weeks. However, disappointment toward the Chinese economy was tempered overnight a favorable Chinese industrial production reading for November and by a month over month rise in retail sales. In a longer-term bullish overnight development, Commerzbank expects further significant upside in copper prices from a combination of tight supply and recovering demand.


Interested in more futures markets?  Explore our Market Dashboards here.

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