Written Commentary
PRECIOUS METALS
Gold & Silver:
The gold market is not tracking inversely with the US dollar as recent significant declines in the dollar at times coincided with noted declines in gold. However, the gold trade has seen pressure off fears of stagflation on and off over the last five months and the threat of stagflation was certainly mitigated by Friday’s US nonfarm payroll upside surprise.
BASE METALS
Copper:
Even though London Copper continues to seriously outperform the US market, the strength of global copper prices is a tide that lifts all boats. However, in the current case strength in London might merely be a tide that simply supports US copper prices. The US market continues to face a wall of supply with COMEX warehouse stocks tracking toward 650,000 ounces and nearly 3 times the size of LME copper warehouse inventories. Despite the overhang of US supply the world copper market fundamentals continue to lay the foundation of further gains with recent reports that a recovery in mining activity has not materialized yet.
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.
