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Metals Vulnerable

GOLD / SILVER

We see a vulnerable position in gold and silver to start the last trading session of the week, with prices holding just above chart failure points, the dollar showing strength and a bit of global slowing fear prompting questions toward physical commodity demand. The gold market also starts out today under a bit of pressure following lower prices in Shanghai and India. Therefore, it is not surprising to see some divergence this morning between gold and silver, with silver showing signs of respecting consolidation support and possibly exhibiting less volatility than gold today.

PLATINUM

ETF investment interest is small which in turn suggests palladium lacks a definitive bull story. Critical support is seen at $2,131.30 and in the event silver and gold dive sharply today, further downside targeting could be seen at $2,102.20. As opposed to palladium, the platinum market seriously damaged its charts yesterday with the lowest/breakout trade since August 3rd. However, the palladium market is showing a trend of growing interest in platinum ETF holdings, as they expanded for a 12th straight session yesterday and have a net year to date gain of 6.7%.

COPPER

Despite another week of noted declines in daily LME copper warehouse stocks, persistent headlines predicting solid Chinese copper demand and news of the closing of a Chinese copper mining operation (due to operating losses and low quality ore) the copper market is signally more corrective action on its charts. Clearly the market wasn’t supported yesterday as-a-result of news that Rio Tinto revised its 2020 production guidance downward and therefore the focus of the trade appears to be centered on demand instead of supply.

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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