CME Group Micro Gold, Silver and Copper Products Update – August 2024
Highlights
- A new all-time high COMEX active month gold price of $2,488.40/oz. was established on July 17, 2024. The rising expectation of the Federal Reserve rate cut in September was drawing sponsorship as we can see from the elevated managed money net positions. With that said, the hotter-than-expected PCE and profit-taking capped the monthly price gain at 5.7% ($2,473.0/oz.).
- Silver prices were under pressure towards the second half of July without its yellow counterpart leading the upward momentum and the weak industrial demand for the metal. The prices eventually closed out July at $28.940/oz., down 2.1% MoM.
- High level of global inventories, persistent weak Chinese demand and lack of fresh stimulus to support the property market in mainland China had led to a 4.9% monthly copper price decline, which settled July at $4.1765/lb.
- Micro Gold futures (MGC) and Micro Silver futures continued to trade actively with QTD average daily volume (ADV) of 105,982 contracts and 19,651 contracts, up 68% and 88% respectively, compared to the same period last year.
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 July 1 to July 31, 2024)
Key Economic Events in August/September 2024:
Source: CME Group, Quikstrike
Useful resources
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The Commitments of Traders (COT) tool can provide a comprehensive and highly configurable graphical representation of the CFTC's report on market open interest.
Build and test your trading strategies in a simulated environment with free pricing and analytics tools for CME Group markets. Choose from three ways to access exclusive, web-based tools developed by QuikStrike®.
Disclaimer
Exchange traded derivatives and cleared over-the-counter (“OTC”) derivatives are not suitable for all investors and involve the risk of loss. Exchange traded and OTC derivatives are leveraged instruments and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money initially deposited. This communication does not (within the meaning of any applicable legislation) constitute a Prospectus or a public offering of securities; nor is it a recommendation, offer, invitation or solicitation to buy, sell or retain any specific investment or service.
The content in this communication has been compiled by CME Group for general purposes only and is not intended to provide, and should not be construed as advice. It does not take into account your objectives, financial situation or needs, and you should obtain appropriate professional advice before acting on or relying on the information set out in this communication. Although every attempt has been made to ensure the accuracy of the information within this communication as of the date of publication, CME Group assumes no responsibility for any errors or omissions and will not update it. Additionally, all examples and information in this communication are used for explanation purposes only and should not be considered, investment advice, the results of actual market experience, or the promotion of any particular products or services. All matters pertaining to rules and specifications herein are made subject to and superseded by official Chicago Mercantile Exchange Inc. (“CME”), the Chicago Board of Trade, Inc. (“CBOT”), the New York Mercantile Exchange, Inc. (“NYMEX”), and the Commodity Exchange, Inc. (“COMEX”) rulebooks or, as applicable, the respective Rulebooks of CME Group’s certain other subsidiary trading facilities. Current rules should be consulted in all cases including matters relevant to contract specifications.
