CME Group Micro Gold, Silver and Copper Products Update

Highlights

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

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 August 5 to August 30, 2024)

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

Key Economic Events in September/October 2024:

Key Economic Event	ET	GMT / BST	SGT / HKT
China Caixin Manufacturing PMI	Sep 1, 9.45 p.m.	Sep 2, 2.45 a.m.	Sep 2, 9.45 a.m.
U.S. ISM Manufacturing PMI	Sep 3, 10.00 a.m.	Sep 3, 3.00 p.m.	Sep 3, 10.00 p.m.
U.S. Non Farm Payrolls	Sep 6, 8.30 a.m.	Sep 6, 1.30 p.m.	Sep 6, 8.30 p.m.
China Balance of Trade	Sep 6, 11.00 p.m.	Sep 7, 4.00 a.m.	Sep 7, 11.00 a.m.
China Inflation Rate YoY	Sep 8, 9.30 p.m.	Sep 9, 2.30 a.m.	Sep 9, 9.30 a.m.
U.S. Inflation Numbers	Sep 11, 8.30 a.m.	Sep 11, 1.30 p.m.	Sep 11, 8.30 p.m.
China Industrial Production YoY	Sep 13, 10.00 p.m.	Sep 14, 3.00 a.m.	Sep 14, 10.00 a.m.
U.S. Fed Interest Rate Decision, FOMC Economic Projections, and Fed Press Conference	Sep 18, 2.00 p.m.	Sep 18, 7.00 p.m.	Sep 19, 2.00 a.m.
U.S. Core PCE Price Index	Sep 27, 8.30 a.m.	Sep 27, 1.30 p.m.	Sep 27, 8.30 p.m.
China NBS Manufacturing PMI	Sep 29, 9.30 p.m.	Sep 30, 2.30 a.m.	Sep 30, 9.30 a.m.
China Caixin Manufacturing PMI	Sep 29, 9.45 p.m.	Sep 30, 2.45 a.m.	Sep 30, 9.30 a.m.
Fed Chair Powell Speech	Sep 30, 1.00 p.m.	Sep 30, 6.00 p.m.	Oct 1, 1.00 a.m.
U.S. ISM Manufacturing PMI	Oct 1, 10.00 a.m.	Oct 1, 3.00 p.m.	Oct 1, 10.00 a.m.
U.S. Non Farm Payrolls	Oct 4, 8.30 a.m.	Oct 4, 1.30 p.m.	Oct 4, 8.30 p.m.
FOMC Minutes	Oct 9, 2.00 p.m.	Oct 9, 7.00 p.m.	Oct 10, 2.00 a.m.
U.S. Inflation Numbers	Oct 10, 8.30 a.m.	Oct 10, 1.30 p.m.	Oct 10, 8.30 p.m.
China Inflation Rate YoY	Oct 12, 9.30 p.m.	Oct 13, 2.30 a.m.	Oct 13, 9.30 a.m.
China Balance of Trade	Oct 12, 11.00 p.m.	Oct 13, 4.00 a.m.	Oct 13, 11.00 a.m.
China Industrial Production YoY and GDP Growth Rate YoY	Oct 17, 10.00 p.m.	Oct 18, 3.00 a.m.	Oct 18, 10.00 a.m.
China NBS Manufacturing PMI	Oct 30, 9.30 p.m.	Oct 31, 1.30 a.m.	Oct 31, 9.30 a.m.
U.S. Core PCE Price Index	Oct 31, 8.30 a.m.	Oct 31, 12.30 p.m.	Oct 31, 8.30 p.m.
China Caixin Manufacturing PMI	Oct 31, 9.45 p.m.	Nov 1, 1.45 a.m.	Nov 1, 9.45 a.m.

Source: CME Group, Quikstrike

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