Written Commentary
GOLD
December gold futures are higher but remain in a 10-day congestion pattern. Futures are holding up well despite recent economic reports suggesting the Federal Open Market Committee may be less aggressively lowering its fed funds rate.
Supporting the upside for gold is 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 today after on Friday hitting the highest level since May 29. Price gains in the last few weeks can be attributed to economic stimulus plans recently announced by a large silver consuming country in Asia. In addition, underpinning the market remains silver’s safe haven status in light of ongoing geopolitical issues.
However, limiting gains are prospects of a less aggressive monetary policy easing from the Federal Reserve.
COPPER
December copper futures remain in a symmetrical triangle pattern after topping at 4.790 on September 30 when a one-day reversal pattern to the downside on the daily chart was made. Futures currently remain in a broadly based eight-day trading range.
Escalating tensions in the Middle East prompted traders to liquidate riskier holdings in favor of safe-haven assets. However, economic stimulus measures from a large industrial metals consuming country in Asia continue to support market sentiment.
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