Written Commentary
GOLD / SILVER
The Press overnight is touting the potential for gold to post is first weekly decline in 5 weeks. With the chatter of inflation draining from the market, US economic data mixed too slightly weak, and the dollar holding within striking distance of 9-month highs, is not surprising to see gold trickle lower on the charts. However, gold and silver did see fundamental support this week from ECB commitments to remain supportive of their economy.
PALLADIUM / PLATINUM
The PGM markets came alive yesterday and palladium has extended the rally this morning off what is likely follow-through technical buying with a small amount of physical buying mixed in. In a longer-term negative, South African PGM miners have begun to formulate plans to implement solar energy in their operations, so they can get out from under long held and severe power disruptions. While significant bullish buzz at the beginning of the month has dissipated, palladium and platinum should draft some lift from reports that Russia’s largest producer of palladium and platinum saw quarterly combined output decline by 28% and 27% respectively.
COPPER
With a higher high overnight and the highest trade since July 6th, the copper market continues to perform stronger than other physical commodities in the current lackluster economic environment. The copper market is likely drafting support from yet another weekly decline in Shanghai copper stocks of significance.
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.
