Written Commentary
GOLD
After record highs earlier this week, December gold futures are lower today as traders continue to assess the Federal Reserve’s dovish policy stance, which was reflected in yesterday’s release of the minutes from The Federal Open Market Committee’s July 31 policy meeting.
The main event this week will be Friday’s Federal Reserve Chair Powell’s speech at the Kansas City Federal Reserve’s annual Jackson Hole Economic Symposium. The Bureau of Labor Statistics downwardly revised employment data will likely be a topic of discussion at this week’s Jackson Hole conference, which begins today.
Geopolitical tensions in the Middle East continued to support the bullish trend in gold.
SILVER
Some of the recent gains in September silver futures are being given back today. Yesterday’s release of the minutes from the Federal Open Market Committee’s July 31 policy meeting were bullish but appear to have been fully factored into pricing.
Futures have put in an impressive performance over the past two weeks even though it appears that the Federal Reserve will be less aggressive when it pivots to accommodation. Prospects of a weakening global economy may limit industrial demand for silver.
COPPER
September copper futures are lower this morning after in the overnight trade advancing to the highest level in over two and a half weeks. Futures have been able to recover from the five-month low of $3.9210 that was hit on August 7.
Some of the strength is linked to labor unrest at copper mines in Chile, which threatens to disrupt global supplies. In addition, prospects of a Federal Open Market Committee pivot to accommodation has been supportive. However, countering these bullish influences is the bearish influence of a weakening global economy, which could limit demand for industrial commodities, including copper.
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