CME Group Micro Gold, Silver and Copper Products Update – September 2024

10 Sep 2024

For the second month in a row, COMEX active month gold price reached another all-time high of $2,550.60/oz. on August 20, 2024. Cooler than expected CPI and PPI, coupled with the Fed’s announcement that they are ready to begin the rate cut as early as September, helped the gold price to eventually gain 2.2% MoM. Managed money net positions have reached 200K contracts, the highest since January 2020.
Silver prices settled August 2024 largely unchanged MoM at $29.145/oz. The rally in the gold price lended some support to the silver prices, but the poor industrial demand outlook acted in the opposite direction.
Copper prices increased 0.8% MoM to close August 2024 at $4.2115/lb. on the back of a strike at BHP’s Escondida copper mine in Chile, which threatened to disrupt >5% of global supply. With that said, persistent weak Chinese demand, as shown by the worse-than-expected manufacturing PMI, continued to put a cap onto price gain.
While the market events are driving the price movement, our Micro Gold futures (MGC) and Micro Silver futures continue to trade in a robust manner with QTD average daily volume (ADV) of 114,858 contracts and 20,250 contracts, up 113% and 109% respectively, compared to the same period last year. The deep liquidity allows for high capital efficiency trading to take place for risk management.

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