Explore Special Offers & White Papers from AFS

Surprise Gains in Metals This AM


Despite significant daily outflows from gold and silver ETF holdings yesterday, gold and silver have started out on a very constructive track. While the dollar has started off under pressure the magnitude of the movement in the dollar is not justification for the strong opening rally in precious metal prices today. Furthermore, generally higher global equity markets and little change in US treasury yields suggest a noted impact from other outside markets. Furthermore, the gold and silver markets are higher despite comments from the Fed’s Bullard indicating he prefers “frontloading” aggressive rate hikes to contain price pressures arising from geopolitical tensions. The initial gains this morning are even more impressive considering demand warnings from the World Gold Council with respect to India.


With the most recent ETF flows available showing a daily decline of 3,433 ounces of palladium and a decline of 132 ounces in platinum, news from the investment sector remains bearish. In fact, platinum ETF holdings are now down 11% year-to-date while palladium holdings are down by 15%.


A combination of US/Chinese political tensions over Taiwan and fresh hawkish dialogue from the US Federal Reserve yesterday has fostered ongoing copper demand fear. Even though the official US contingent has left Taiwan, tensions remain in place because of Chinese military “exercises” involving live fire around Taiwan. Yet another negative influence on copper prices this morning are widespread expectations of another fifty -basis point rate hike from the Bank of England.

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