Silver Futures Market News and Commentary
Dec Comex gold (GCZ19) this morning is up +1.0 (+0.07%), and Dec silver (SIZ19) is up +0.138 (+0.79%). Precious metals prices are stronger this morning after the dollar index tumbled to a 1-1/2 month low, although gains were limited as stocks rallied on news of a Brexit deal. Today's weaker-than-expected U.S. economic data was negative for economic growth prospects, dovish for Fed policy, and supportive for gold prices. Sep housing starts fell -9.4% to 1.256 million, weaker than expectations of -3.2% to 1.320 million. Also, the Oct Philadelphia Fed business outlook index fell -6.4 to 5.6, weaker than expectations of -4.4 to 7.6. In addition, Sep manufacturing production fell -0.5%, weaker than expectations of -0.3% and the biggest decline in 5 months. Metals gave up most of their gains today after the UK and European Union agreed on a new deal for Brexit. Doubts about passage of the deal through the UK parliament on Saturday has limited the downside in metals prices after Northern Ireland's Democratic Unionist Party (DUP), which supports UK Prime Minister Johnson, said today they will not vote for the Brexit deal. Reduced trade tensions between the U.S. and China is another negative for precious metals after China's Ministry of Commerce said today China is currently working on the "Phase 1" deal with the U.S. and is discussing the next phase of trade talks and hopes it can make progress with the U.S. in removing tariffs. Ongoing trade and geopolitical tensions, along with dovish central bank expectations, sparked fund buying of precious metals as long gold positions in ETFs have risen steadily over the past four months up to a new 6-1/2 year high Monday and long silver positions in ETFs rose to a new record high on Sep 2.