Written Commentary
COPPER
December copper futures are higher and are closing in on the $4.4500 per pound level, continuing gains from the previous session, driven by a weaker U.S. dollar and growing optimism about potential stimulus measures from China, which is the largest consumer of copper. The U.S. dollar’s decline today is being influenced by heightened uncertainty regarding the U.S. presidential election and the upcoming Federal Reserve interest rate decision, making U.S. dollar-denominated commodities such as copper more attractive.
Chilean miner Codelco, the world’s largest copper producer, has announced a production rebound, generating 338,000 tons of copper in the third quarter.
SILVER
December silver futures are higher today making a high of $33.00 per ounce, recovering slightly from a two-week low as the U.S. dollar weakened today in light of rising uncertainty over the U.S. presidential election and the upcoming Federal Reserve interest rate decision. A weaker U.S. dollar typically boosts demand for dollar-denominated commodities like silver.
Additionally, optimism surrounding potential stimulus measures from China added to positive sentiment as the National People’s Congress began its five-day meeting.
GOLD
December gold futures are higher today after pressure developed late last week. Some of today’s gains can be attributed to a weaker U.S. dollar as markets prepare for the upcoming U.S. presidential election and the Federal Reserve’s policy announcement.
Investors are increasingly turning to gold as a hedge against long-term inflation risks.
In addition, renewed tensions in the Middle East have further increased the safe-haven appeal of gold.
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