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Global News Underpin Prices

GOLD / SILVER

While the fundamentals in gold and silver remain highly fluid, the chart in April gold has retained a positive set up despite yesterday’s $100 trading range. While there were exchanges of sanctions between the UK and Russia again overnight (regarding airspace) the Ukraine situation is likely to continue to moderate. Certainly, there will be reports of human carnage which will fan anxiety and flight to quality interest, but the real focus of the gold and silver trade might shift to US Federal Reserve policy expectations.

PALLADIUM / PLATINUM

While the palladium market yesterday gyrated wildly and produced a trading range of nearly $400, the charts remain bullish with the early trade today just under the highest close in palladium since the middle of last August. Even though palladium was not listed as a sanctioned or embargoed commodity, fears of difficulty in transporting and guaranteeing delivery leave supply concerns in place. Speculative interest in the PGM markets has expanded significantly, but trading interest is primarily focuses on palladium.

COPPER

With the copper market showing signs of strength in the early hours Thursday, it appeared the market might skirt the threat against global copper demand because of the Russian attack. However, in the end, demand fears gained control and prices look even more vulnerable today. In a negative development, the US decision to avoid sanctions on aluminum from Russia (prices are already at all-time highs) might mean no sanctions are planned on Russian copper exports. However, as indicated several times this week, classic internal copper market fundamentals are of little impact on prices for now.

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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