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Some Positive Action in Gold


While the gold and silver markets have shown some positive action this week, the anemic rate of gain on the charts and the limited amount of bullish buzz in the markets detracts from the bull case. In fact, investor sentiment toward gold remains extremely negative, with ETF holdings yesterday shedding holdings for the 22nd straight day in a row. While silver ETFs added 526,959 ounces to their holdings yesterday the market continues to be plagued by periodic outflows.


With another large daily platinum ETF inflow of 17,490 ounces yesterday, it appears as if investors have “discovered” or become more interested in a vehicle capable of benefiting from a return to global growth and more importantly a vehicle capable of benefiting from inflation. Clearly, the PGM markets have delinked with the gold and silver markets especially with the palladium market virtually exploding yesterday and reaching the highest levels since the beginning of the year.


While the copper market has rejected yesterday’s 3-day low in the early action today, another noted jump in daily LME copper warehouse stocks gives off the impression that demand recently has not outstripped supply. In fact, LME copper stocks are now at the highest since January 11th and have had 9 daily inflows in the last 11 sessions. On the other hand, the London copper trade has seen chatter this week about improving demand and is aware of the South American supply disruptions.

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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