Written Commentary
GOLD
Gold futures advanced to a new record high yesterday. Traders are waiting for the 9:00 central time revised data on U.S. job growth from the Bureau of Labor Statistics. The Bureau of Labor Statistics will release revised data on U.S. job growth for the year ending in March 2024. Some economists believe the number of jobs added could be revised down by 600,000 or more.
The minutes from the July 31 Federal Open Market Committee meeting will be released at 1:00.
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. It is likely that Powell will indicate the Fed is ready to lower its fed funds rate at its September 18 meeting.
Geopolitical uncertainties and substantial global ETF inflows continue to support the gold market.
SILVER
September silver futures are higher, hitting an over two-week high due to expectations that the Federal Reserve will start cutting interest rates in September. Last week September silver futures advanced above a major downtrend line that started in mid-July. Futures have put in an impressive performance 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 higher and are closing in on the $4.20 per pound area, rebounding 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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