GOLD
December gold futures advanced to the 2455 area due to ongoing expectations of upcoming easier credit policies from the Federal Reserve. Currently there is a 61% probability that the Federal Open Market Committee will lower its fed funds rate by 50 basis points at its September 18 meeting, and there is a 39% chance that the Fed will lower rates by 25 basis points. Probabilities of rate cuts were slightly diminished in light of today’s jobless claims report that showed a total of 233,000 claims when 240,000 were expected. Additional interest rate cuts are anticipated at subsequent meetings this year. In addition, the bullish flight to quality influence remains in light of increasing geopolitical tensions in the Middle East.
SILVER
September silver futures are higher and are near the 27.25 level. However, in the overnight trade silver tested yesterday’s low, which was also the lowest level since April 2. The dominant bearish influence of a weakening global economy is dampening demand for industrial commodities, including silver. Economic reports last week showed the U.S. economy added substantially fewer jobs in July than predicted, which caused traders to believe the Federal Reserve may be behind the curve and already may be too slow in averting an economic downturn.
COPPER
September copper futures are lower today, testing yesterday’s lows, which were the lowest since March 7. The dominant bearish fundamental is the increasing perception that the global economy is weakening. Demand for base metals, including copper, is likely to be limited by a major copper consuming country in Asia.
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.