Written Commentary
GOLD
December gold futures are slightly lower today and have come off of recent highs primarily due to comments from Federal Reserve officials, which indicated the central bank may be slower to add additional accommodation. However, underlying support remains in light of ongoing geopolitical tensions in the Middle East.
Economic reports have been mixed. Today’s jobless claims report came in at 225,000, which was expected.
SILVER
Silver futures topped on September 26. Much of the break from the highs can be linked to Federal Reserve speakers’ rhetoric of less aggressive accommodation going forward.
However, underpinning the market remains the ongoing geopolitical issues. Also, recently announced stimulus measures from a large metals consuming country in Asia is likely to limit the downside.
COPPER
December copper futures topped at 4.790 on September 30 when a one-day reversal pattern to the downside on the daily chart was made. Recent gains can be attributed to large stimulus measures from a major copper consuming country in Asia that improved the economic and demand outlook for the world’s largest copper consumer.
Underlying support remains for copper due to prospects of further U.S. interest rate cuts, which could boost global economic activity.
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