Written Commentary
GOLD & SILVER
While not a significant move initial action in gold from a technical perspective favors the bear camp this morning with prices forging a 5-day low. Apparently, the gold market is unimpressed with news that Swiss customs is reviewing imports of Russian gold last month to determine if those imports violate sanction rules. Looking ahead, it remains extremely difficult to predict daily movement in gold and silver prices as the highest probability for price action remains consolidation.
PALLADIUM & PLATINUM
Other than the increased potential for demand destruction, fear from escalating global recession fears, fear of lost demand in the auto sector (from rising loan rates and from fear of job losses), palladium might see additional pressure from reports that Russia could maneuver its export flow toward India and China and in turn totally usurp Western supply barriers. Similarly, the platinum market is also vulnerable to demand destruction fears from broadening recession fear and the market is also vulnerable to a small measure of liquidation in the event inflation fears are tamped down because of industrial commodity price declines.
COPPER
With another lower low extension this morning, September copper has reached the lowest level since February 2021 and might not find support until a past top from January 2021 situated two cents below this morning’s low. However, a more significant and substantial support/target price seen at $3.50, which represented value to the market from November 2020 to February 2021! With the market rushing to factor in a global recession, a modest increase in Shanghai weekly copper warehouse stocks and news that labor unions have agreed to halt protests in Chile, the bear camp remains in control.
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.
