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Metal Volatility


Clearly, extreme volatility is set to continue today with both gold and silver disappointed that the Fed was not poised to step in and support the economy again. Adding into the negative track this morning is a 4-day high in the dollar which tamps down talk of currency debasement and news that the US and China will have trade talks in the coming days.  Relatively speaking, the silver market has held up better than gold this week as it has avoided the machinations of the financial market forces impacting gold.


While the charts in the palladium market are not severely damaged, they are negative in our opinion and in the event of further notable losses in gold, we see the downside targeting of $2131.30 in September palladium and perhaps $2102.20 in the event that the bullish buzz is further drained from the gold market to end the trading week. he platinum market on the other hand, saw its 11th straight ETF inflow by investors bringing the year to date additions to 6.4% above year ago levels.


Obviously, the copper market was short-term overbought from a technical perspective following a 4-day low to high recovery of $0.26 with some analysts suggesting the market was also overbought on a fundamental basis. In fact, in the last COT positioning report the copper market was already net long 36,781 contracts and since that report prices have added nearly $0.16 on the upside, thereby likely putting the net spec and fund long at the largest long since June 2018.

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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