GOLD / SILVER
Apparently a slightly lower dollar, ongoing optimism from equities and higher oil prices has provided a positive initial start to the Wednesday gold and silver trade. However, the Federal Reserve open market committee meeting is scheduled to end early this afternoon and it is possible the bull camp in gold and silver could be disappointed by the outcome. Like the gold market, the silver market is also likely to face increased volatility today, with the lack of actual movement by the Fed likely to send prices quickly back toward last week’s consolidation low.
PALLADIUM / PLATINUM
While the big range up extension and multi month high move yesterday in palladium enhances the bullish chart set up, we suspect that positive economic psychology, higher global equities and positive Chinese economic data will be required daily for prices to continue to rise and regain the $2500 level. While not as direct of an impact, we suspect favorable Chinese data helps to improve demand expectations for platinum especially with the prospect of increased Chinese jewelry demand for platinum.
The mantra of strengthening in the Chinese economy goes hand-in-hand with expectations for improved Chinese copper demand and the overnight headlines have added to that bullish condition. In addition to news that Chinese August refined copper output increased by 9.7% versus year ago levels, the trade also saw news that Chinese domestic air travel has returned to “normal”.
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.