Written Commentary
GOLD / SILVER
Gold got a lift overnight on a weaker dollar, but the move was not very convincing, as the market stayed inside yesterday’s range. Silver did manage a sharp rebound, as it made through Friday’s high to trade to its highest level since December 1. Other “industrial” metals like copper, platinum, and palladium were also higher, but silver was the most impressive. A deflationary vibe had seemed to shift into place with recent disappointing data, fears of further physical activity restrictions, and sinking oil prices, but the resiliency in silver overnight seemed to undermine that theory.
PALLADIUM / PLATINUM
Palladium and platinum both traded higher overnight, as industrial commodities seemed to get a lift from stronger equity market action and some weakness in the dollar. Perhaps the markets viewed yesterday’s risk-off news a bit of an overreaction, but we cannot help but think the concerns about Omicron, lockdowns, and increasing caseloads far from over.
COPPER
The copper market has maintained upside momentum from Monday’s late recovery, reaching a 1 1/2-week high overnight. With a big range down washout rejected yesterday, the March contract may have found some form of fundamental bottom.
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.
