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Dollar Impact Negative to Gold & Silver


With the dollar building a solid consolidation over the prior five trading sessions and then coming out of that formation to the upside, the impact of currencies on gold and silver is negative to start today. However, the gold market should garner support from news that Hong Kong September net gold exports to China came in at 34.7 tons versus 21.8 in the previous month. The gold and silver markets drafted some buying interest from the potential stimulus benefits of Chinese liquidity injections yesterday, but there were also some reports of tight supplies at the physical level.


The palladium market forged an extremely narrow trading range yesterday and remains within proximity to last week’s consolidation lows in a fashion that suggest the bear camp has a slight edge. today Even though the Chinese stimulus provided support to other physical commodities, platinum and palladium failed to benefit from the Chinese assistance yesterday as demand expectations remain limited by the shortage of vehicle chips.


While the copper market should have derived support from news of Chinese liquidity/stimulus efforts yesterday, the December contract this morning has already breached a key pivot point support level at $4.50 and could be vulnerable to lower low action later today. Hindering copper to start today is a 3-week low in aluminum, soft energy prices and a slightly firmer dollar.

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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