Written Commentary
GOLD
February gold futures advanced when the U.S. November employment data were released.
The World Gold Council noted a decline in physical gold demand in China, while investment demand remained strong in 2024. It predicts that both sectors may stabilize, with jewelry demand potentially rising, while investment in gold could slow in 2025.
SILVER
March silver Futures are slightly lower but remain near one-month highs as traders believe there is an increasing chance that the U.S. Federal Reserve will lower interest rates again this month. This runs counter to recent comments from Federal Reserve Chair Jerome Powell when he recently said the central bank is not in a hurry to lower rates, citing strong economic growth, a solid labor market and ongoing inflationary pressures.
Support for silver remains due to speculation that China may announce additional stimulus measures during key political meetings this month, which could further boost demand in the world’s largest metal consumer. Silver, along with other precious metals, also saw increased safe-haven demand driven by political unrest in France and South Korea, as well as continued conflicts in Eastern Europe and the Middle East.
COPPER
March copper futures are slightly higher and receiving support from increasing prospects of a fed funds rate reduction this month. Copper futures remain near a four-week high, as expectations grow that Chinese officials might unveil additional policy support during important political meetings this month.
Recent data showed that Chinese manufacturing activity grew for the second consecutive month in November, boosting the outlook for copper demand.
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