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Support Builds But Rate Fears Linger


The metals markets enter the Wednesday trade under pressure off a combination of lingering fear of higher interest rates, negative investment flows away from ETF’s and prevailing bearish charts. The bearish bias in gold is confirmed by the markets inability to rally despite persistent Fed indications that the Fed and the markets should be patient with low rates until the US economy is producing strong employment.


The PGM markets continue to be held down by weakness in gold and from fears of rising interest rates. The markets have also been undermined as-a-result of soft Chinese data, with China overnight posting a decline in a private services PMI reading for February.


Even though aluminum and steel prices in China surged to 10-year highs overnight, that has not sparked speculative buying of copper this morning. However, the copper market should derive some support from news that Codelco (the world’s largest copper producer) saw production in January decline to the lowest since last July.

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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