Silver surged to above $60 per ounce on Tuesday as expectations of an imminent 25 bp Fed cut met a pronounced squeeze in the physical market. Futures pricing keeps real policy rates on a path that favors precious metals even though stronger labor data cloud the medium term outlook. Meanwhile, industrial demand has risen sharply, led by solar panels, electric vehicles and electronics, while mine production has repeatedly failed to keep pace with consumption, creating a structural deficit. That shortfall showed up in the market plumbing, with visible draws in benchmark stocks, constrained...
Oil held the biggest two-day drop in a month as concerns about global oversupply continued to weigh on sentiment. West Texas Intermediate rose above $58 a barrel after losing 3% over the previous two sessions, while Brent crude closed near $62. The US said domestic crude production would hit a record high 13.6 million barrels a day this year, adding to a flood of supply hitting the global market. "Whether it's a glut or a super-glut, it's kind of hard to get away from," Saad Rahim, the chief economist of global commodities trader Trafigura Group, said on...
Gold prices strengthened slightly in the early Asian session ahead of today's FOMC meeting results. Spot gold rose around 0.1% to around $4,210.85 per troy ounce, with investors opting for caution while awaiting the Fed's decision, which could trigger a new direction for the precious metal. Generally, the market has already expected a 25 basis point interest rate cut, so the main focus is no longer on the figure, but on the latest economic projections and the communication style of Fed Chairman Jerome Powell. Analyst Daniel Takieddine of Sky Links Capital Group believes that Powell's...
Japanese stocks are higher due to a weaker yen despite continued uncertainty over the U.S. interest rate outlook next year. Auto, brokerage and metals stocks are leading gains. Honda Motor is up 4.8%, Nomura Holdings is 2.4% higher and Mitsui Kinzoku is up 5.4%. USD/JPY is at 156.81, up from 156.08 as of Tuesday's Tokyo stock market close. Investors are closely watching any progress in Prime Minister Sanae Takaichi's measures to support the economy ahead of the Bank of Japan's policy meeting next week. The Nikkei Stock Average is up 0.9% at 51106.23. Source: Bloomberg
Silver prices are strengthening after breaking through the $60 per ounce level for the first time. On Wednesday morning, silver briefly reached a record high of around $60.92 per ounce, continuing its 4.3% surge in the previous session. This rapid rise has led many market players to increasingly look to silver as a leading asset amidst sentiment regarding interest rate easing. From a fundamental perspective, silver's rally is largely supported by expectations that the Federal Reserve will cut its benchmark interest rate by another 0.25% at the conclusion of its December 9-10 meeting. Lower...