Written Commentary
GOLD / SILVER
We see the gold market in a corrective track on the charts with fresh fears of deflation/slowing fostered by the latest US infection count of 288,579 for December 20. However, March silver yesterday took encouragement from the risk on mood to trade to its highest level in three weeks, presenting a bullish technical setup to counter gold’s vulnerable fundamental positioning. It didn’t help gold and silver prices yesterday that bond prices fell sharply for the second straight day, which means higher interest rates, making non-interest-bearing instruments like gold less attractive.
PALLADIUM / PLATINUM
In addition to bullish press coverage overnight, palladium is bolstered from the prospect of significant ongoing short covering especially with the violation of key chart resistance levels. Not surprisingly, the PGMs benefited from the risk on mood yesterday, with both platinum and palladium rebounding from Monday’s selloff but neither able to make it through last week’s highs.
COPPER
Apparently, the copper trade has discounted the threat against demand and refocused on the global tight supply situation. However, a portion of the trade thinks industrial demand for copper will not be dramatically and sustainably impacted by the omicron wave which could be a perilous opinion. However, Shanghai copper warehouse stocks are near the lowest level since 2009 and until recently LME copper warehouse stocks were at significantly important low junction levels.
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.
