Written Commentary
GOLD / SILVER
The action in the gold and silver markets continues to be very discouraging to the bull camp, as classic internal bullish themes are not driving prices higher. In fact, with gold and silver prices faltering in the wake of the hottest US CPI month over month gain since 2009, it is clear that precious metals markets are still not in a position to benefit from rising inflation.
PLATINUM / PALLADIUM
Even the palladium market sagged under the fear of rising interest rates and a strengthening dollar yesterday. However, the bull camp should be extremely disappointed in the market’s inability to benefit from a thirteenth straight monthly rise in Chinese vehicle sales. While the platinum market gave ground yesterday it did not show the type of liquidation present in other precious metals markets and we attribute that to the fact that prices are already $60 an ounce below this week’s highs.
COPPER
While the copper market is a separate market from the iron ore market, iron ore prices fell sharply overnight as China continues to threaten excess speculation in materials prices and that has probably put copper off balance this morning. As in many other markets today could replicate yesterday’s action in-the-event that PPI is hot and the dollar rises, equity markets break hard and many physical commodity markets fear corrective action.
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.
