Written Commentary
GOLD & SILVER
The gold market saw more consolidation on Thursday and overnight as the China inflation data came in near or slightly below expectations, which appears to leave room for more easing. Next up is the US CPI data, which could be a make or break for the metals market. If the number were to come higher than expected, it would suggest the Fed will extend its rate hikes into late this year.
PALLADIUM & PLATINUM
Like gold and silver, PGMs were lower overnight as the Chinese inflation data came in as expected to a little bit soft. PGMs seem to be lacking a fundamental driver at this point, leaving little to focusing on besides chart action and fund trader positioning. China’s data leaves room for accommodative monetary policy there, but the resumption of COVID protocols and even some lockdowns in two of their largest cities suggests more economic uncertainty ahead, and this does not bode well for automobile production or auto catalyst consumption.
COPPER
Copper has seen volatile action this week as the market has been unable to sustain upside momentum, and that continued to be the case after prices fell to their lowest level in a week this morning. July copper turned sharply to the downside on Thursday and closed with a heavy loss. Chinese trade balance data showed a monthly uptick in copper imports and better than expected reading for overall imports and exports, which should have helped soothe demand concerns.
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.
