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Dollar Recovery Adds Pressure to Metals


The overnight shift into a global anxiety condition from the surge in global infection counts, talk of a return to lockdowns in Europe and a sharp recovery in the dollar has put gold and silver under significant pressure. Unfortunately for the bull camp, recent mixed to slightly soft US scheduled data was generally seen as a negative, indicating an extension of deflationary slow growth selling of gold and silver might return instead of a those fears being seen as a catalyst for safe-haven buying of gold and silver.


Not surprisingly, the PGM markets are trading lower this morning in sync with negative sentiment flowing from equities but also because of noted weakness in other precious metals markets. However, the palladium market might be partially disappointed by the lack of fresh assistance from the PBOC following their decision overnight to leave interest rates unchanged. Unfortunately for the bull camp platinum prices into the new trading week were still near the middle of the last 2 months sideways consolidation which could allow noted declines without violating significant chart support points.


While the December copper contract did forge a fresh higher high for the move this morning it would not seem like the global environment is conducive to further gains in copper and other industrial commodities. In addition to the surging fears of lost US economic momentum the markets are also seeing renewed fears of a return to lock down throughout Europe in-an-effort to squelch the surge of new infections.

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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