Explore Special Offers & White Papers from AFS

Bullish Tilt in Metals Limited


After a significant range down failure on the charts overnight, the gold market has come bounding back with a compacted recovery of $42. With infection problems surging in China and Germany, daily US cases holding above 210,000, a rollover down in the dollar and the prospect of significant political angst in the US transition of power, it would appear as if flight to quality bargain hunting buyers stepped back into gold and silver overnight.


While the PGM markets have not paid particular attention to the production/supply side of the equation it should be noted that South African PGM output in November declined by a massive 16.1% on a year over year basis. Critical support for April platinum today is seen at $1089.90. The palladium charts are also negative to start with a 5-day low registered early and little in the way of support until a recent double low down at $2344.50.


In retrospect, Chinese data released during the Monday US closure was mixed and therefore could be considered somewhat negative for copper. Certainly, year-over-year GDP growth at 6.5% is supportive of copper (even if that growth remains well below trend) but that news was heavily offset by a quarter over quarter GDP growth of only 2.6% and that bad news was amplified by a softer than expected Chinese retail sales reading.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today