Strong USD Pressures Silver

SILVER

December silver futures dropped to $30.28 per ounce on Tuesday, reaching its lowest point in a month, as a stronger U.S. dollar put pressure on the metal. The U.S. dollar has advanced to its highest level since the first week in May due to expectations that Donald Trump’s policies could stimulate U.S. economic growth and inflation, which potentially could limit the Federal Reserve’s ability to reduce interest rates.

Worries about global economic weakness also weighed on silver, with China’s disappointing stimulus package adding to market uncertainty. On Friday, China revealed a 10 trillion yuan debt initiative to support local government financing, but it fell short of providing the direct economic stimulus investors had anticipated. This dampened the outlook for industrial metals, with silver facing additional challenges due to its significant role in electrification, especially for solar panels.

There are reports suggesting Chinese-owned solar panel manufacturers have begun scaling back production.

GOLD

December gold futures fell to under $2,600 per ounce on Tuesday, marking a third consecutive session of declines and reaching their lowest point since September 19. The drop was driven by a stronger U.S. dollar and reduced demand for safe-haven assets as investors have recently turned to riskier assets as they assess the broader economic implications of Donald Trump’s election victory, especially regarding fiscal policies and monetary strategies.

Data from the World Gold Council revealed that Indian gold ETF holdings have surged, doubling over the past four years to reach a record 54.5 tonnes as of October 31.

COPPER

December copper futures declined to just above $4.13 per pound on Tuesday, reaching their lowest levels in nearly two months as concerns about global economic slowdowns and a disappointing stimulus package from China pressured the market.

 

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