Explore Special Offers & White Papers from ADMIS

Negative Outside Influences For Metals


In a minimally supportive development for gold and a moderate supportive development for silver, ETFs added 55,396 ounces to gold holdings yesterday, with silver ETF holdings jumping by “6.2 million” ounces. Going forward the gold and silver markets should be undermined today by the looming release of the FOMC meeting minutes from last month.


With negative outside market influences of rising interest rates and a strong dollar, the dip in palladium prices yesterday was justified and the initial higher action today is very surprising. It should also be noted that US February vehicle sales earlier in the week dropped to 13.7 million annualized units from 14.4 million annualized units in January. The platinum market yesterday was even weaker than the palladium market with a 5-day low producing very negative charts. In fact, with the platinum market consistently tracking lower in the face of the Russian debacle and Russia the 2nd largest producer of platinum in the world, it is clear platinum sentiment is unresponsive to bullish supply conditions.


In retrospect, the action in the copper market yesterday looks like a blowoff top! Certainly, the copper market has received significantly supportive supply-side developments this week from news of reduced copper production from Chile. While the prospect of lost Russian copper supply has been widely factored, this week’s promise of more EU sanctions appeared to include specific references to industrial material embargoes. A negative supply-side story came from overnight forecasts of significant increases in base metals production from platinum producers (byproducts).

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