Bidennomics Blues. Manic Metals Report 09/09/2024

Metals prices have the Bidennomics Blues. Another very disappointing monthly jobs report along with the fact that we’ve seen major downward revisions in previous reports shows that job growth in the United States is anemic and pathetic that gave us a risk off situation for precious metals.

The big hit to the stock market and the confidence in the US economy hurt the metals as people look to preserve cash in times of uncertainty and despite the weakness in precious metal after the jobs report the fundamentals for gold continued to be strong as central bank buyers continue to buy the dips. And we should bounce back the market more than one is oversold on irrational pessimism even though the outlook for the economy continues to be bumpy weak jobs report and weak inflation could set the stage for aggressive rate cuts by the US so metals really have to pay deep attention to what’s going to be happening with this week’s consumer price index that may be the key as to whether or not we get a quarter or 50 basis point rate cut my bet is is going to be 1/4 but the feds going to probably signal more aggressive rate cuts in the future

Russia has been a major buyer of gold, and they continue to do so as concerns that sanctions will make it more difficult for Russia to protect their currency. Kitco News reported that Russia will spend 8.2 billion rubles ($92 million) each day on gold and foreign currency from September 6 through October 4 for a total of 172.9 billion rubles ($1.9 billion), the country’s Finance Ministry announced on Wednesday.

“The amount of funds allocated for purchases of foreign currency and gold totals 172.9 billion rubles,” the ministry said in a statement. “Transactions will be carried out from September 6 to October 4, 2024, respectively, daily volume of purchase of foreign currency and gold will equal 8.2 billion rubles.”

The new spending target is nearly seven times the daily volume of 1.12 billion rubles ($12.4 million) the Ministry was spending from August 7 to September 5, which totaled 24.65 billion rubles ($272.8 million).

The Finance Ministry said they expect “windfall” oil and gas revenues of 162 billion rubles in September. Actual oil and gas revenue in August was 10.9 billion rubles ($129 million) higher than the initial expectation.

Aluminum futures bucked the traded. All Circle reported that ‘On Friday, September 6, both LME aluminum cash bid price and LME aluminum official settlement price moved up by US$2 per ton or 0.08 per cent to clock at US$2,367.50 per ton and US$2,368 per ton.

Silver also slipped on the risk off it seems to be putting in a bit of a bottom physical silver virus probably want to look at this dip is an opportunity to put some of the silver away for a rainy day copper markets could rebound her a little bit because of the big sell off in China obviously the Chinese economy has been weighing on copper in the negativity though seems to be overwhelming to the downside weak manufacturing data in the United States and China has been natural downward factor for the price of copper

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