Written Commentary
PRECIOUS METALS
Gold:
Seeing the noted gains in gold and silver this morning as a sign that the downward bias may have shifted to the upside. Certainly, a weaker US dollar, a measure of stabilization in treasuries and hopeful end of war comments from Trump provide a more solid fundamental foundation as compared to action over the prior seven trading sessions. However, we are skeptical of predictions from the US President suggesting the war will not be a prolonged affair as Iran continues to be very stubborn and driven by a thinning theocracy leaders.
Silver:
The silver market has become more oversold from a technical perspective with open interest reaching the lowest level since the end of April and falling by 18% since August 17th.
BASE METALS
Copper:
Over the prior five trading sessions the copper market has seen its focus shift away from tight supply and toward concerns of slowing demand. On the other hand, the copper trade has shown amazing bullish resiliency off the tight supply situation. Nonetheless, developing weakness in global equities, no end in sight for the war and “so far” little evidence of Chinese bargain hunting buying signaling an end to the slide in prices.
Interested in more futures markets? Explore our Market Dashboards here.
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.
