CME Group Micro Gold, Silver and Copper Products Update

Highlights

Gold price rallied another 0.7% MoM to end 2023 at a new historical year-end high of $2,071.80/oz. as the Federal Reserve announced its plan to cut rates in the coming year. The gold price rose due to market expectations of rate cuts, a weaker U.S. dollar and softer inflation data, all of which increased investor demand.
Despite the above-mentioned bullish factors in play, silver prices underperformed its yellow counterpart by settling December at $24.085/oz., down 6.1% MoM. Concerns about demand exceeding supply due to the clean energy transition and the potential for Fed rate cuts are driving managed money into commodities, pushing their net positions upward.
Copper prices closed the month at $3.8905/lb., up 1.0% MoM, lifted by a weaker U.S. dollar. However, concerns about China’s demand recovery, reflected in a shrinking manufacturing PMI, capped further gains despite tight global copper supplies.
Micro Gold futures (MGC) and Micro Silver futures (SIL) Q4 average daily volume (ADV) of 63,824 contracts and 11,380 contracts were up 26% and 15% QoQ respectively. In addition, SIL 2023 ADV of 10,719 contracts is the highest since launch. The continuous growth of liquidity enhances market participants’ capital efficiency.

Micro Gold (MGC), Micro Silver (SIL) and Micro Copper (MHG) Futures Update

MGC, SIL and MHG price movement and daily range (expressed in terms of one lot notional)

*Intraday price movement is expressed as the difference between the daily high price and the daily low price multiplied by the contract notional in troy ounce (MGC and SIL) and pounds (MHG).

Options Heatmap (Change in OI from December 1 to December 29, 2023)

View current open interest and changes in volume and OI by strike, put or call, and expiration.

Key Economic Events in January/February 2024:

Key Economic Event	ET	GMT / BST	SGT / HKT
China Caixin Manufacturing PMI	Jan 1, 8.45 p.m.	Jan 2, 1.45 a.m.	Jan 2, 9.45 a.m.
U.S. ISM Manufacturing PMI	Jan 3, 10.00 a.m.	Jan 3, 3.00 p.m.	Jan 3, 11.00 p.m.
FOMC Minutes	Jan 3, 2.00 p.m.	Jan 3, 7.00 p.m.	Jan 4, 3.00 a.m.
U.S. Non Farm Payrolls	Jan 5, 8.30 a.m.	Jan 5, 1.30 p.m.	Jan 5, 9.30 p.m.
U.S. Inflation Numbers	Jan 11, 8.30 a.m.	Jan 11, 1.30 p.m.	Jan 11, 9.30 p.m.
China Inflation Rate YoY	Jan 11, 8.30 p.m.	Jan 12, 1.30 a.m.	Jan 12, 9.30 a.m.
China Balance of Trade	Jan 12, 10.00 p.m.	Jan 13, 3.00 a.m.	Jan 13, 11.00 a.m.
China Industrial Production YoY	Jan 16, 9.00 p.m.	Jan 17, 2.00 a.m.	Jan 17, 10.00 a.m.
U.S. Core PCE Price Index	Jan 26, 8.30 a.m.	Jan 26, 1.30 p.m.	Jan 26, 9.30 p.m.
China NBS Manufacturing PMI	Jan 30, 8.30 p.m.	Jan 31, 1.30 a.m.	Jan 31, 9.30 a.m.
U.S. Fed Interest Rate Decision and Fed Press Conference	Jan 31, 2.00 p.m.	Jan 31, 7.00 p.m.	Feb 1, 3.00 a.m.
China Caixin Manufacturing PMI	Jan 31, 8.45 p.m.	Feb 1, 1.45 a.m.	Feb 1, 9.45 a.m.
U.S. ISM Manufacturing PMI	Feb 1, 10.00 a.m.	Feb 1, 3.00 p.m.	Feb 1, 11.00 p.m.
U.S. Non Farm Payrolls	Feb 2, 8.30 a.m.	Feb 2, 1.30 p.m.	Feb 2, 9.30 p.m.
China Inflation Rate YoY	Feb 7, 8.30 p.m.	Feb 8, 1.30 a.m.	Feb 8, 9.30 a.m.
U.S. Inflation Numbers	Feb 13, 8.30 a.m.	Feb 13, 1.30 p.m.	Feb 13, 9.30 p.m.
FOMC Minutes	Feb 21, 2.00 p.m.	Feb 21, 7.00 p.m.	Feb 22, 3.00 a.m.
U.S. Core PCE Price Index	Feb 29, 8.30 a.m.	Feb 29, 1.30 p.m.	Feb 29, 9.30 p.m.
China NBS Manufacturing PMI	Feb 29, 8.30 p.m.	Mar 1, 1.30 a.m.	Mar 1, 9.30 a.m.
China Caixin Manufacturing PMI	Feb 29, 8.45 p.m.	Mar 1, 1.45 a.m.	Mar 1, 9.45 a.m.

Source: CME Group, Quikstrike

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