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Signs of Lower Inflation Affects Metals


In a strange twist of historical fundamental focus the gold and silver trade today “need” evidence that inflation is moderating to extend the mini rallies started last week. Clearly, today’s US inflation report is likely to prompt a series of chain reactions through financial markets which will ultimately give direction to gold and silver prices later this week.

Gold and Silver bars


With December palladium prices this morning trading $71 below yesterday’s high, it is possible that some short-term traders banked long profits from bargain hunting buying early last week to avoid potential volatility from the US CPI report. In retrospect, the sharp gains in PGM prices yesterday were partly the result of positive economic sentiment, spillover lift from other physical commodity market gains and perhaps from increased fear of fresh barriers to Russian PGM exports.


With global risk on sentiment in equities extended into another session, many commodities like copper are posting modest gains in the early going today. However, even if global copper demand expectations continue improve, they are likely to be heavily offset by Chinese copper demand fears which are ramping up because of fresh Covid lockdowns.

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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