Written Commentary
PRECIOUS METALS
Gold:
With new all-time highs posted right out of the gate this morning, and the potential for thinning holiday trade conditions later this week, both gold and silver could run the table with more historical gains ahead. Obviously, bullish sentiment runs rampant as a recent poll suggested more than 50% of the trade expects 2026 to bring the same historic performance to gold and silver prices as was seen this year! Furthermore, last week several large bank research departments raised gold price targets and given the potential for another government shutdown in early 2026 and given the delay in weekly positioning reports, the trade is without a timely update on the magnitude of speculative long positioning in gold and silver futures and options.
BASE METALS
Copper:
The upward track in copper remains in place despite the lack of a new high for the move in the early trade today. In fact, last week’s gains were forged on rising open interest with the move to the highest level since the end of July, also forged on the highest trading volume in 30 days. Obviously, the trade is focused on entrenched fear of tight supply after a major mining disaster idled large portion of world production in a single event. However, the dominating fundamental force has in our opinion shifted to exploding demand for electrical applications like data centers.
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