Written Commentary
GOLD
December gold futures advanced to new record highs. However, some of the gains were given back when the U.S. 7:30 economic reports were released.
Durable goods orders in August were unchanged when an increase of 9.8% was expected. The gross domestic product in the second quarter was up 3.0% at an annualized rate as anticipated, and personal consumption expenditures increased 2.8% when a gain of 2.9% was estimated. Jobless claims in the week ended September 21 were 218,000 when 224,000 were forecast.
The increasing risks of a broader conflict in the Middle East continued to enhance gold’s status as a safe haven.
SILVER
December silver futures are higher and have advanced above the $33 per ounce level today, which is the highest level since May 30. On Tuesday December silver futures broke out above an eight-day congestion pattern. Most of the strength can be attributed to dovish expectations from the Federal Reserve.
In addition, some of the gains are due to recently announced economic stimulus measures from a large silver consuming country in Asia.
A weaker U.S. dollar index contributed to recent strength in silver prices.
COPPER
December copper futures are higher and are now at the highest level since July 10. Some of this strength can be attributed to reports that a top copper consuming country in Asia will be announcing more stimulus measures to support its economy.
In addition, prospects of another 50 basis point cut in the fed funds rate from the U.S. Federal Reserve contributed to price gains.
Interested in more futures markets? Explore our Market Dashboards here.
Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.
ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.
A subsidiary of Archer Daniels Midland Company.
© 2021 ADM Investor Services International Limited.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.
