Written Commentary
GOLD / SILVER
With a fresh higher high for the move and the approach of $1800, December gold appears to have follow-through buying capacity especially after investors yesterday were found to have purchased 85,904 ounces of ETF gold holdings. In addition to obvious political uncertainty flowing from Afghanistan, economic uncertainty has been boosted by soft data from both China and the US. Furthermore, gold and silver prices yesterday managed to rally despite strength in the dollar and are exhibiting that same action early this morning.
PALLADIUM / PLATINUM
With a very poor trade on the charts yesterday (the lowest trade since July 20th), and a noted ETF liquidation of 7,241 ounces of palladium yesterday the bear camp has an edge into the 2nd trading session of the week. With the platinum market rejecting a 3-day low in the face of noted weakness in palladium, strength in the dollar and weak equity prices, the platinum market might have found solid support at the $1,000 level.
COPPER
The copper market is under pressure this morning because of news that China closed a port because of infections at the port as that adds to preexisting Chinese copper demand fears. Not surprisingly, the copper market broke down yesterday following very disappointing Chinese industrial production and retail sales readings for July.
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.
