Explore Special Offers & White Papers from ADMIS

$ Not Inflation Driving Gold

GOLD / SILVER

In looking ahead to this week’s action the bear camp in gold and silver should be licking their chops as the markets widely expect the Fed to announce the beginning of tapering of asset purchases on Wednesday. With the added pressure of a surge in the dollar from last week’s lows and the recent rise in US short term interest rates, the bear camp has several themes operating in its favor.

PALLADIUM / PLATINUM

From a fundamental perspective, palladium demand views were slightly undermined this morning by Chinese PMI data as the Chinese economy continues to limp along and that in turn keeps Chinese auto sector demand for palladium measured. The platinum market has a middle-of-the-road net spec and fund long positioning and therefore it could take significant declines to put speculative positioning into an oversold condition.

COPPER

With ongoing weakness in bellwether industrial materials like iron ore, weakness in copper this morning is not surprising. However, the bear camp should be somewhat ruffled by the large 8,875 ton decline in daily LME copper warehouse stocks. However, the copper market should be undermined because of disappointing Chinese PMI readings for October which many see as a sign that the energy crisis is holding back the Chinese economy.

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