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Sideways Chop For Gold


In retrospect, the gold market has chopped sideways this week within a $26 range despite several days of noted dollar strength. In fact, the dollar yesterday nearly broke out to fresh contract highs leaving fear of currency related selling in play in the gold market today. On the other hand, silver has displayed much better technical action than gold recently and has seen inflows to silver ETF holdings recently.


While we doubt projections of massive electric vehicle production from General Motors served to undermine palladium yesterday, that probably played a role in the spike down action. While we have nothing solid to base our opinion on, it seemed like platinum benefited yesterday from spread trading with palladium.


With China back from holiday some traders were concerned that additional Chinese real estate problems could present themselves today. However, the Chinese news front remains thin, and the market should draft support from an International Copper Study Group world refined copper market deficit forecast of 42,000 tons for 2021. Unfortunately, the international copper study group also projected 2022 to present a surplus of 328,000 tons!

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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