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Bitcoin Rally Induces Selling in Metals


After a 2-day rally, the precious metals turned sharply to the downside on Friday, and they remained on the defensive with mild losses overnight. Continued strength in bitcoin, which climbed above the $62,000 level for the first time since April, has been a notable source of pressure on the precious metals. The dollar was stronger, and Treasury rates increased, adding additional pressure.


Platinum and palladium were under moderate pressure overnight. This follows a steep selloff in palladium on Friday. Disappointing Chinese GDP data have been a source of pressure on the markets, as they do not bode well for Chinese vehicle sales during the fourth quarter. September US domestic auto inventories will be released this week.


Copper reached a new five-month high overnight, but it gave back much of those gains as the session progressed. Nonetheless, the market appears to be on-track for a fourth positive session in a row. A new 12-year low for weekly Shanghai exchange copper stocks provided a boost to prices on Friday, as did another decline in daily LME copper stocks. LME stocks fell again overnight, for the 20th draw in the past 21 sessions.

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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