Written Commentary
COPPER
March copper futures are steady on Thursday, remaining near three-week highs after a brief rally earlier in the week. This price increase was fueled by speculation that Beijing might announce additional stimulus measures during important political meetings this month.
The absence of a readout from China’s Politburo following its regular November meeting added to these expectations, as the world’s second-largest economy faces increasing uncertainties. In the past week, President-elect Donald Trump has made two tariff threats, including a warning to impose a 100% tariff on BRICS nations if they establish a currency to rival the U.S. dollar. Additionally, recent data showed Chinese manufacturing activity expanded for the second month in a row in November, enhancing copper’s demand outlook.
GOLD
February gold futures are lower but remain in a seven-day trading range as investors evaluated the Federal Reserve’s monetary policy outlook ahead of an important jobs report tomorrow.
Gold’s appeal as a safe-haven asset is being reinforced by global uncertainties, such as political unrest in South Korea and France and the ongoing Ukrainian-Russia war.
SILVER
March silver futures are marginally lower today but remain close to a triple top pattern. Underlying support for silver remains due to prospects of an interest rate cut from the Federal Open Market Committee this month.
There is growing speculation that China could announce further stimulus measures during key political meetings this month, potentially boosting demand in the world’s largest consumer of metals. Silver, along with other precious metals, also saw support from rising safe-haven demand in light of political instability in France and South Korea, as well as ongoing conflicts in Eastern Europe and the Middle East.
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