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Copper Open Poor

COPPER

While the copper market started last week with a significant rally in the wake of positive Chinese data and strength in equities, the market finished last week back on its heels and has opened poorly in the new trading week. In fact, given the fresh lower low for the move overnight, risk-off from equities, more inflows to copper exchange warehouses and emerging market infection concerns, we think copper will see a lot of trade below $4.00 this week.

GOLD / SILVER

Taking a step back from the markets, it is clear that the June gold contract found strong value just above $1,650 with interim resistance coming in at last week’s highs of $1,759.40. Last week, gold and silver established inverse correlation with the US dollar again with the dollar at times the all-encompassing influence on gold and silver prices.

PLATINUM

In retrospect, the palladium market failed to sustain gains in the face of new all-time highs in US equities last week, and that suggests the market is not tightly tethered to the ebb and flow of the outlook for the global economy. Palladium positioning in the Commitments of Traders for the week ending April 6th showed Managed Money traders are net long 3,420 contracts after net buying 173 contracts. The Commitments of Traders report for the week ending April 6th showed Platinum Managed Money traders added 3,591 contracts to their already long position and are now net long 24,264.

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.

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