Written Commentary
COPPER
September copper futures are back under the $4.00 per pound level and are near the lowest level in five months. Futures have come under pressure recently on the belief that the global economy is slowing, limiting demand for industrial commodities. Demand for copper and base metals in general is expected to remain relatively weak, especially from a large metals consuming country in Asia.
GOLD
December gold futures advanced despite a second day of gains in the U.S. dollar. The on-balance bullish bias for the yellow metal is driven by expectations of multiple interest rate cuts from the Federal Reserve following weak economic reports, especially last Friday’s employment data.
Financial futures markets are now pricing in over 100 basis points of total easing in 2024. There is a 63% probability that the Federal Open Market Committee will lower its fed funds rate by 50 basis points at its September 18 meeting, and there is a 37% probability that the Fed will lower its rate by 25 basis points.
SILVER
September silver futures are lower as the bearish influence of anticipated reduced industrial demand more than offset the bullish flight to quality influence. Silver fell to three-month lows on Monday due to increasing growth concerns and the widespread sell-off in financial markets.
Interested in more futures markets? Explore our Market Dashboards here.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
