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Metals in a Coiling Pattern


After showing some positive action to start the trading week, gold appears to have lost some bullish buzz and has settled back into a coiling pattern. However, it does appear as if gold and silver are ebbing and flowing with the prospect of a stimulus agreement with a stimulus agreement likely to propel the Dollar lower which in turn should provide some fresh buying interest in gold and silver.


Like the gold trade the palladium market appears to be tightening into a coiling pattern as if a major decision is directly ahead. On the other hand, the palladium market should be supported as a result of a price forecast from Citi that predicted palladium prices would reach $2,800 by the middle of 2021 with the world supply and demand condition ultimately flipping back into a deficit off surging physical and investment demand. However, both palladium and platinum are heavily dependent on improved global demand “expectations”, but it also appears as if the market lacks speculative interest despite renewed hopes for passage of a stimulus package today.


After failing to rally definitively off positive Chinese economic data yesterday, copper prices this morning have broken out to the upside off the combination of hope for the US stimulus, but also because of further positive vaccine news. Adding into the bull track in copper this morning is another Chinese import quota offering of 5,980 tonnes for scrap copper as that provides specific evidence of ongoing Chinese demand for all forms of copper.

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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