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Jim Wyckoff

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Metals markets on fire!

May 20, 2024 by Jim Wyckoff

Gold prices this week have hit a new record high, at $2,454.20 an ounce, basis June Comex futures. Reports say Chinese speculators are snapping up gold at a torrid pace and that bullion from the West is moving to China to satisfy the strong demand. It could be that Chinese investors have soured on China’s economic prospects and China financial markets, including the unsteady yuan Chinese currency, and are purchasing safe-haven gold and silver. Chinese real estate investment dropped 9.8%, year-on-year, from January to April. Broker SP Angel this morning said “China is struggling to contain the impact of the collapse of two major property developers which have left thousands of unfinished properties in limbo. To compound the problem, many of these apartments have been sold with buyers supporting mortgages on properties they are not able to move into.” Western speculators are also buying gold, silver and other commodity futures markets amid ideas the major central banks of the world will be able to ease their monetary policies in the coming months, which would spark better global economic growth that would then spur more demand for raw commodities. Silver prices this week hit an 11-year high overnight, at $32.75 an ounce, basis July Comex futures. Meantime, Comex copper futures hit a record high of $5.1990 a pound this week, basis the July contract. Stay tuned!

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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Disclaimer

There is a risk of financial loss in futures and options trading. Futures trading is neither easy nor an easy way to make money. It takes hard work to have success. Please use sound money management when trading futures. Past performance is not necessarily indicative of future results. Nothing on this website is intended to be a trading recommendation to buy or sell futures or options. All information has been obtained from sources believed to be reliable, but accuracy is not guaranteed. Readers are solely responsible for how they use the information on this website.

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