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Favorable Outside Market Forces Lift Metals


Obviously, gold, and silver prices are being lifted this morning because of a large range down action in the US dollar. We suspect the weakness in the dollar is a flight to quality liquidation brought on by news that Evergrande made an onshore coupon payment as that diverts dire consequences for the company in the near term. Gold ETF holdings are now down 8% on the year, with silver ETF holdings up on the year by 2.5%.


The main story in the palladium market this morning comes from Switzerland where their palladium exports surged 83% on a month over month basis in September. In another positive development palladium ETF holdings increased by 8,662 ounces and are now 5.2% higher on the year. In a similar bullish development, platinum ETF holdings increased by 5978 ounces which in turn reduced the year-to-date contraction in holdings to 1.7%.


December copper sits just under yesterday’s new high for the move in the early going today as if the contract high from May of $4.8705 will be tested soon. Obviously, supply is a critical force for the bull camp with fears that a disruption of supply will be seen in Peru where the country’s 4th largest copper mine could see the only access road blocked by local communities after the copper mining company negotiations on taxes and pollution failed.

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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