Take those old Records off the shelf as gold contuse to outdo itself surging again into record territory. December Gold exceeded 2755 ounce yesterday and has a chance to set another record today. Fundamentals such as the uncertainty surrounding the upcoming US Presidential Election as well as investors looking for a haven from the winds of war keep gold shining.
Silver also followed through with its breakout last Friday and still looks historically unvalued to gold.News that China cut its interest rates again on Monday should also offer some precious metals support.
Copper also is higher on the rate cut as the long-term prospects for copper look bright.Copper has been living and dying though in the short term on China economic stories and that may continue even as we probably are heading towards a supply deficit next year.
Bloomberg reported that “- China will account for less than half of global steel consumption in 2024 for the first time in six years, according to the World Steel Association, as the decline in the country’s real estate sector pummels demand for the metal.The forecasts from Worldsteel show diverging prospects between China — for two decades the major driver of glob l demand growth — and steel hot spots in the rest of the world, from South Asia to the Middle East and Latin America.
“China’s at the structural peak in terms of steel demand,” Simon Trott, chief executive for iron ore at Rio Tinto Group, the world’s largest supplier of the steelmaking ingredient, said at an address in Melbourne on Friday. “The world will need more steel in the next 20 years than it’s used in the last 30, despite the sort of growth we’ve seen in China.”Worldsteel sees Chinese consumption racking up a fourth year of declines in 2024 to 869 million tons, while demand in the rest of the world rises 1.2% to reach 882 million tons. China’s share will shrink further in 2025, according to the association.
For those that are finding the swings in metals to wild consider using spreads to reduce the volatility. You can also us the ‘micro’ contracts to better control the risk in your metal’s portfolio.More By This Author:Reinflate The Metals – Manic Metals ReportThe Energy Report: In The Bunker – Monday, October 14The Energy Report: Historic Opportunity – Friday, October 11
