Written Commentary
GOLD
December gold futures advanced to near the 2695 level on Wednesday to a new record high, as expectations for further monetary policy easing and heightened geopolitical tensions increased the appeal of the precious metal. The increasing need for a more aggressively dovish Federal Open Market Committee was highlighted by yesterday’s release of the September consumer confidence report, which showed the largest one-month drop since August 2021.
SILVER
Yesterday December silver futures broke out above an eight-day congestion pattern. There was follow through strength in the overnight trade when December silver futures advanced to their highest level since May 31. Recent strength is linked to several central banks moving more aggressively to accommodation, especially the U.S. Federal Reserve.
A weaker U.S. dollar index contributed to recent strength in silver prices.
COPPER
December copper futures were higher in the overnight trade, surpassing the 4.55 dollars per pound level, reaching the highest level since July 15. Some of the strength is linked to a slate of economic support measures from a large copper consuming country in Asia.
Recent price gains can also be attributed to last Wednesday’s FOMC decision to lower its fed funds rate by 50 basis points, boosting the global economic outlook.
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