Written Commentary
GOLD / SILVER
We are a little surprised to see the gold market trading positive this morning in the face of another contract high move in the dollar, news of a 38.7% decline in Chinese net gold imports through Hong Kong and given the broad-based risk on environment in global equities. However, seeing slightly higher precious metal and commodity prices might be proof that the primary driving force for many commodities for now is the recently developing threat of slowing. The World Gold Council indicated that total gold supply declined by 6% in the quarter due to lower mined output.
PALLADIUM
While the palladium market continues to grind slowly higher in the face of weakness in other precious metal prices, the palladium trade is not giving off a consistent bullish focus or theme. Therefore, more sideways chop is expected but the downside might be limited once nearby palladium prices fall to $1,850 which is the level of prices just ahead of the Russian invasion.
COPPER
Despite another increase in daily LME copper warehouse stocks of 1800 tons, an upward adjustment in a 2022 copper production forecast from Glencore, new contract highs in the dollar and news that the Peruvian government has removed protesters from a shuttered copper mine, copper prices have managed to remain near unchanged. Furthermore, the copper market has also constructed a consolidation pattern over the prior 4 trading sessions, thereby moderating what was extremely negative charts at the start of the week.
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.
