Explore Special Offers & White Papers from ADMIS

Temporary Bottoming In Gold & Silver

GOLD / SILVER

With the April gold contract rejecting last Friday’s low and temporarily regaining a key moving average this morning, the bear camp is less confident in its positioning. However, the bounce in the gold and silver trade might be largely attributable to the reversal and sharp slide in the dollar from last week’s high of 111 ticks.

PALLADIUM / PLATINUM

With a new high for the move and reversal yesterday followed by a lower spike trade this morning the palladium market could be signaling a top or could simply be signaling an increase in volatility. The PGM markets are probably undermined because of the ebb and flow of the Russian/Ukraine situation with yesterday’s storyline suggesting the Russians have responded in a written letter to the US/UN and have indicated they are not planning an invasion. Platinum traded higher, but this was after a three-day selloff, so it is possible that the action reflected some spread unwinding.

COPPER

In retrospect, we would call the less hawkish US Federal Reserve revelations yesterday as a relief to the copper trade, instead of a full shift back into a bullish environment. However, LME copper stocks have continued to decline and overnight global equity markets were higher, and the charts have shifted slightly positive with a $0.07 rally off yesterday’s low. While global equity market action is giving off some positive vibes again today, the brunt of international manufacturing PMI data released overnight was softer than expected thereby keeping optimistic copper demand views in check.

 

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