Written Commentary
GOLD
After making a new record high yesterday, December gold futures are lower today. Recent gains to record levels can be attributed to increasing demand for safe-haven assets in light of uncertainties related to the U.S. elections and geopolitical tensions.
SILVER
December silver futures declined to near the 33.00 per ounce level today after last week hitting the highest level in almost 12 years. There is underlying support for safe-haven assets due to rising uncertainty around the upcoming U.S. presidential election and the Federal Reserve’s policy outlook.
In addition, attention is focusing on the National People’s Congress, taking place from November 4-8, where announcements regarding potential stimulus measures from Beijing are anticipated. Reports suggest China may be considering a stimulus package exceeding 10 trillion yuan to boost its economy. Also, the Chinese government’s initiative to strengthen the electric vehicle sector by improving EV charging infrastructure has positively impacted market sentiment for silver.
COPPER
December copper futures are steady today, remaining within a sideways range since mid-October. The market is optimistic about potential additional stimulus measures from China, which is the world’s largest consumer of copper.
In addition, the government’s focus on supporting the electric vehicle sector, including plans to expand EV charging infrastructure, has positively influenced market sentiment for copper. Also, a report from the National Bureau of Statistics indicated that factory activity in China showed growth in October for the first time since April, reflecting improved demand conditions. However, services activity remained positive but fell short of expectations.
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