Explore Special Offers & White Papers from AFS

Less Downside Action For Metals


If metal market views begin to think rapidly rising interest rates might not deter inflation, that could begin to discourage aggressive and very confident selling interest in gold and silver. Fortunately for the bull camp, hawkish market sentiment from the US central bank will likely moderate this week as the US Fed entered its blackout period over the weekend ahead of the July 26th – July 27th meeting. At least to start today, gold and silver are benefiting from further weakness in the dollar which at times overnight had reached 5-day lows! On the other hand, hawkish foreign central bank dialogue and continued private analyst hawkish dialogue will keep a lid on gold and silver prices.


Despite the initial lift from positive outside market forces, the palladium market maintains an overall bearish technical and fundamental condition. In fact, investors remain negative toward both palladium and platinum with PGM ETF holdings last week posting 44,289 ounces moving out of platinum ETFS putting the year-to-date contraction in holdings at 9.4%. While the platinum market from the last COT positioning report into the low last week only declined by $22, that washout likely resulted in a record “net spec and fund short”. Unfortunately for the bull camp, the platinum market has little fundamental news flow and what news flow there is creates demand concern.


With the copper market becoming significantly short-term and intermediately oversold from technical perspectives last week, and most fundamentals remaining distinctly bearish rallies are likely to be temporary. In fact, a pattern of daily increases in Chinese infection counts increases the prospect of lockdowns in China and fresh economic headwind fears. However, the market this morning caught distinct lift from positive global market psychology and from reports the Chinese central bank will continue to provide supportive monetary policy.

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