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Negative Demand for Precious Metals


While gold continues to trade the ebb and flow of growth/no growth views the market overnight saw a series of negative gold demand specific headlines with the most significant story detailing the worst Indian festival sales quarter for gold since 2008 and yet gold is higher to start today.


After showing immunity to the escalating infection counts/deteriorating economic conditions in the prior 2 weeks, the palladium market has given into the non-Chinese demand destruction storyline. Adding into the downward bias are indications from Impala platinum of a gain of 11% in production in their most recent quarter.


The headline from Bloomberg overnight noting that copper could forge its best monthly run-up since 2001, clearly highlights a market that has differentiated itself from the rest of the physical commodity markets. However, the coming weeks will be extremely important for copper as it recently posted a fresh all-time spec and fund long positioning, it remains $0.21 off its October lows and is seeing a very real threat of demand destruction in non-Chinese economic zones.

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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