Written Commentary
The Ghost in the Machine Q3 2024
October 8, 2024
GOLD
December gold futures on Tuesday advanced to close to the $2754 level and remain near the record highs that were registered yesterday as traders continue to invest in safe-haven precious metals. Escalating tensions in the Middle East appeared to be a prime motivation for investors seeking the safety of gold.
The approaching U.S. election is also fueling demand for safe assets.
SILVER
December silver futures advanced to near a 12-year high today at near the $34.80 dollars per ounce level. This surge is driven by uncertainties surrounding the U.S. election, ongoing tensions in the Middle East and increasing demand for safe-haven assets in an environment of central bank easier credit policies.
The anticipation of stronger industrial demand for silver, which is an essential component in solar panels, has also contributed to rising prices. Additionally, China, which is the largest consumer of metals, has implemented a series of support measures to stimulate economic growth.
COPPER
December copper futures are higher today, recovering from yesterday’s selling as optimism increased about demand in China, the largest consumer of the red metal, following a series of stimulus measures from Beijing.
Prospects of lower interest rates from major central banks remain an underpinning supportive factor.
Also, there are expectations of increased demand for copper due to the transition to cleaner energy, which increased concerns about potential shortages, as copper miners face challenges in ramping up supply. Strength in the U.S. dollar, however, has been a headwind for the price of copper.
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