Written Commentary
GOLD / SILVER
Despite a significant bounce off this week’s lows, the gold market appears to be poised to post a big weekly decline. In retrospect, the precious metal markets have attempted to digest the beginning of what is becoming a global interest rate hike cycle and given the long list of central banks hiking rates over the past 30 days it appears the higher rate writing on the wall is apparent.
PALLADIUM / PLATINUM
Apparently, the palladium traders were taking nothing for granted as minimally negative dialogue from the Russian President rekindled concerns that palladium supply would remain severely restrained well into the future. However, as in other markets, traders have suggested recent volatility has knocked liquidity out of the markets which in turn will allow for even more volatility.
COPPER
We attribute the rally in copper yesterday to classic inflation buying, as Chinese copper demand suspicion remains in place. Fortunately for the bull camp Shanghai weekly copper warehouse stocks declined by nearly 20% this week, thereby reminding the market of the pre-existing general global copper supply tightness.
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.
