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Downshift in Gold


We continue to view the precious metal markets with skepticism, especially given the latest upside breakout in the dollar which has lifted the currency index up to the highest level since November 23rd. Clearly, the gold and silver markets have been less sensitive to the strength in the dollar recently, but with the upside breakout in the Dollar extending today, and gold/silver showing early weakness, the bear camp seems to have garnered an edge.


With the palladium market testing and rejecting sub $2,600 pricing in each of the last 4 trading sessions that level becomes a key support and pivot point in today’s action. While April platinum at times yesterday showed strength, in the end platinum was unable to keep up with palladium and the Wednesday trade ultimately posted a continuation of the recent lower high and lower low pattern on the charts.


We see the technical failure of the $4.00 this morning as a significant signal of a pause in the markets support from the widely anticipated 2021 global refined deficit theme. It would appear as if reflation has turned into a mini deflationary condition in the marketplace and with signals of moderating (leveling out) economic recovery in China lower price action in copper is not surprising.

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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