Written Commentary
GOLD
December gold futures are lower today after higher prices yesterday. However, today’s selling has been limited by mild pressure on the U.S. dollar index.
December gold futures advanced to a record high on Wednesday due to its safe haven appeal in light of going geopolitical tensions in the Middle East. The uncertainties concerning U.S. elections is also bringing in demand for the yellow metal.
Gold futures have held up well despite expectations that the Federal Reserve’s rate-cutting cycle will be less aggressive than previously anticipated.
COPPER
December copper futures are higher. In addition, copper prices received support from a slight decline in the U.S. dollar as investors evaluated the outlook for Federal Reserve monetary policy and prepared for the upcoming U.S. presidential election.
Earlier this week it was reported that the copper inventory in SHFE warehouses increased last week to 168,425 tons, its highest level since September 13.
SILVER
Earlier in the week December silver futures were able to advance to near 12-year highs. Recent strength in silver took place despite the U.S. dollar advancing to multi-month highs in October.
Additionally, ongoing concerns about the U.S. debt burden and uncertainties surrounding the U.S. elections contributed to market volatility. Traders are anticipating more stimulus measures from Beijing during the upcoming National People’s Congress Standing Committee meeting, with expectations of a stimulus package potentially reaching 10 trillion yuan as the country attempts to meet its full-year growth targets.
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