Written Commentary
GOLD
December gold futures declined when the U.S. employment numbers were reported. Nonfarm payrolls in September were up 254,000 when a gain of 140,000 was expected, and private payrolls increased 223,000 when up 125,000 was anticipated. Manufacturing payrolls declined 7,000 when down 5,000 was forecast. Average weekly hours declined to 34.2 when 34.3 was expected, and the unemployment rate was 4.1%, which compares to the estimated 4.2%.
The selling pressure was linked to the belief that in light of this report the Federal Reserve is likely to be less aggressively lowering its fed funds rate, although it is widely expected that the Federal Open Market Committee will reduce its key interest rate again at its November meeting.
SILVER
December silver futures came under pressure due to the bearish interest rate implications of this morning’s U.S. employment report.
However, underpinning the market remains silver’s safe haven status in light of ongoing geopolitical issues, along recently announced stimulus measures from a large metals consuming country in Asia.
Prices are likely to recover from the morning selling.
COPPER
December copper futures are putting in a good performance today and are higher despite increasing prospects of a less dovish Federal Reserve. 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. Futures currently remain in a broadly based eight- day trading range.
Recent gains for copper have been linked to announcements of aggressive economic stimulus plans from a large copper consuming country in Asia.
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