Written Commentary
SILVER
December silver futures are lower today in light of the mostly stronger than expected economic reports, which reduces pressure on the Federal Reserve to aggressively lower interest rates. However, some of the strength in previous sessions was linked to disappointing U.S. manufacturing data. Investors are closely watching upcoming U.S. economic reports, which could provide insights into the Federal Reserve’s next steps regarding interest rates.
Additionally, central banks, including the European Central Bank, the Bank of England, the Bank of Canada and the Swiss National Bank have reduced interest rates, making it less expensive to hold non-yielding assets, such as silver.
GOLD
December gold futures continued to advance despite the bearish interest rate implications of this morning’s mostly stronger than anticipated economic reports.
Gold prices also received support In light of escalating tensions in the Middle East.
COPPER
December copper futures are lower and now are trading at the lowest level since September 23. There was some temporary support in the overnight trade during a special briefing, when top Chinese officials announced plans to expand a “white list” of real estate projects and increase bank lending for these developments to 4 trillion yuan by the end of this year in an effort to support the sector. However, traders were disappointed, since many were hoping for stronger stimulus measures.
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