Explore Special Offers & White Papers from AFS

Tightening Coil Pattern in Gold


While it is likely a function of subdued holiday trade, both gold and silver prices this week have settled into a tightening coil pattern which increases the potential of a fresh trend decision ahead. While the silver market has outperformed the gold market recently, that action might come at a price for the bulls, as the net spec and fund long in silver probably put the net spec and fund long at the highest level since February.


Platinum prices forged another new high for the move and the highest price since December 7th overnight in a fashion that suggests a challenge of contract highs up at $1,096.50 is in the offing. In retrospect, the spike up, range up, definitive downside reversal in palladium on Monday and the markets lack of gains in the face of ongoing platinum strength, suggests palladium is vulnerable to further corrective action.


We are surprised that copper prices are tracking higher to start today, with further setbacks in surging industrial material prices in China (namely iron ore). While not as surprising, copper has also avoided selling pressure off the delay in the larger US stimulus package. However, the entrenched pattern of declining world copper exchange warehouse stocks provides a strong supply-side underpin for the bull market.

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today