Written Commentary
GOLD
December gold futures are lower as it appears more likely that the Federal Reserve will be on a slower path to accommodation. It is widely expected that the Federal Open Market Committee will reduce its key interest rate again at its November meeting. However, the Federal Reserve may less aggressively lower its fed funds rate.
Underlying support for gold remains due to its status as a safe-haven asset, which is further enhanced by increasing geopolitical tensions in the Middle East.
SILVER
December silver futures are lower and are now trading at the low end of a 10-day trading range. Some of the pressure is linked to rising U.S. Treasury yields. In addition, some of the weakness may be due to reports of no additional stimulus plans coming from a large metals consuming country in Asia.
Downside pressure may be limited due to silver’s safe-haven status in light of ongoing geopolitical issues.
COPPER
December copper futures are lower, declining under a 10-day trading range, after a large copper consuming country in Asia signaled no additional stimulus measures.
Commodity prices also came under pressure from growing expectations of a less aggressive easing campaign from the Federal Reserve.
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