Written Commentary
GOLD / SILVER
As indicated late last week, we remain skeptical of the bull case in gold and silver and with definitive risk-off sentiment applying early pressure we are emboldened in our bearish views. In addition to a failure at the spike high last Friday, the gold market is also facing a potential upside breakout in the US dollar.
PALLADIUM / PLATINUM
While we were skeptical of the recent rallies in gold and silver prices, we are less suspicious regarding strength in palladium. Certainly, it is a leap to conclude the sharp gains in palladium last week were attributable to potential hostilities between the Ukraine and Russia especially expecting those hostilities to ultimately result in some form of global embargo against Russia which in turn could disrupt PGM export flow.
COPPER
In our opinion, the infection situation is worsening quickly with infection numbers and not the severity of the illnesses the focal point of the physical commodities trade. Adding into the negative bias this morning is noted weakness in all global equity markets, a higher US Dollar, and signs that the US stimulus bill is in trouble. Fortunately for the bull camp, last week saw a decline in weekly Shanghai copper warehouse stocks as that countervails a developing pattern of daily inflows to LME copper warehouses.
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.
