Written Commentary
COPPER
After lower prices yesterday, December copper futures are higher today and are being positively influenced by hopes that China, the top copper consumer, will unveil additional fiscal stimulus measures during the upcoming National People’s Congress Standing Committee meeting.
Additionally, a slight decline in the U.S. dollar today supported copper prices. Also, increasing expectations for improved copper demand is linked to the transition to cleaner energy, which has heightened concerns over a potential supply shortfall, as copper miners face challenges in ramping up production.
GOLD
Selling pressure yesterday was linked to a stronger U.S. dollar and rising U.S. Treasury yields. December gold futures are higher today and are performing very well for today’s news.
Gold’s upside potential is bolstered by its safe-haven appeal in light of ongoing geopolitical tensions in the Middle East. In addition, uncertainties surrounding the upcoming U.S. presidential election and potential monetary easing from major central banks have added to its appeal.
SILVER
Earlier in the week silver was able to advance to near 12-year highs. December silver futures are higher today and are able to recover from yesterday’s declines. Pressure yesterday was due to a strengthening U.S. dollar and rising U.S. Treasury yields.
Ongoing concerns about the U.S. debt burden and uncertainties surrounding the U.S. election have also contributed to market volatility. There is underlying support for silver as traders are anticipating China may present additional economic stimulus announcements during the upcoming National People’s Congress Standing Committee meeting.
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