Written Commentary
PRECIOUS METALS
Gold/Silver:
While the gold and silver markets looked to end 2025 with extremely confident bullish sentiment, a growing list of extremely bullish 2026 price forecasts are flooding the headlines and are likely setting the stage for a potential major blow off rally early in 2026. However, February gold starts the new trading week out on a very negative technical footing with the overnight reversal down from all-time highs already producing a wide trading range of $117. The silver market on the other hand has forged a significant new high overnight of $82.67 (which was three dollars per ounce above Friday’s close) and the market has also reversed aggressively with an early establish ultra-wide trading range of nine dollars per ounce!
BASE METALS
Copper:
While the copper market in London reached a new high (which put the market up 41% year to date) the market was unable to hold the new high for the move overnight in the US and is currently trading $0.24 below the initial high and that is the largest trading range since early October. It should be noted that Shanghai copper hit all-time highs on Friday with LME copper recently making a new all-time high just under $13,000. Therefore, traders should expect ongoing excessive volatility in copper with current implied volatility in the options market approaching 30%.
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.
