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Metals Markets Fear Rising Rates


While the gold market did not make a fresh higher high for the move overnight, prices have managed to consolidate above $1,750 and sit just under this week’s highs. Similarly, the silver market has extended a sideways consolidation around $19.00 and forged a quasi-side double low starting at $18.65. Surprisingly, gold mining shares jumped yesterday along with gold futures prices, which suggest investor sentiment toward gold is not completely negative.

gold bullion pieces


Clearly the palladium market fully discounted a Russian published prediction of a palladium shortage of 80,000 to 100,000 ounces by the end of this year, as the market was unable to hold in positive ground yesterday. According to an independent Russian analyst, demand for palladium is likely to decline in the 2nd half, but lost production is likely to reduce supply by a greater magnitude. The Russian analyst also predicted the 2023 global palladium market deficit to expand to 130,000 to 150,000 ounces. While the platinum market has not been confronted with specific forecasts of slumping global auto sales, the deterioration in global economic sentiment suggests soft vehicle sales forecasts are likely to be forthcoming.


Surprisingly, the September copper contract broke out to the highest level since June 30th yesterday and managed that strength in the face of noted losses in equities, a temporary upside breakout in US treasury yields and in the face of a fresh contract high in the US dollar. Surprisingly, the copper market was not knocked back in the face of bearish Goldman Sachs 3-month, 6-month, and 12-month price forecasts.

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.

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