Explore Special Offers & White Papers from AFS

Gold & Silver Technically Oversold


While the gold and silver markets are technically oversold from the downside carnage this week, both markets face another critical junction today in the form of the monthly US nonfarm payroll release. The markets are primarily concerned with the reaction in the dollar to US data with better than expected (300,000) payroll gains expected to lift the dollar and rekindle pressure on precious metals. t surprisingly, investors continued to flee gold and silver ETF holdings, with gold outflows 36,671 ounces and silver outflows yesterday at 2.5 million ounces. With another Chinese city (Shenzhen) locked down the threat against gold demand from the world’s largest consumer is not insignificant.

gold bars


Not surprisingly, the avalanche of bearish outside market forces in gold are pushing PGM prices lower. In short, the bear camp enters the last trading session of the week with an edge with the bull camp limited to hope that the mid-August low below $1,975 (in the December palladium contract) will temporarily cushion prices against another risk off trading session. While the PGM trade has not seen specific headline coverage suggesting Chinese demand is critical to prices, seeing China import significant PGM supplies from Russia two months ago could result in China selling some PGM stocks now.


With another major Chinese city (Shenzhen) locked down the fresh new low for the move in copper is justified. Adding into the bearish bias to start today is an inflow of 2579 tons of copper to Shanghai copper warehouse inventories. However, LME copper stocks on the day fell 3775 tons and have seen significant daily draws throughout this week! Furthermore, a private entity overnight has pointed out further tightening in copper cathode supply in Chinese bonded areas and that brings 2022 bonded inventories down to the lowest level since the end of 2017.

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