China Promises. Manic Metals Report 12/09/2024

The metals are exploding this morning after a quick dip after Chinas data showed that inflation was weaker than expected now normally that would have been a death knell for copper in the rest of the precious metals but because China vowed to take “more proactive” fiscal measures and “moderately” looser monetary policy.
That turned around the market expectation is that China will loosen their monetary policy to the lowest levels since 2008 which of course created an incredible commodity boom in China and the rest of the world.
Precious metals are also falling apart as a power vacuum in the middle east because of the fall of Bashar Assad in Syria.
While specifics will not be announced until March, it is widely expected that Beijing will keep its next
Metals dipped as the Wall Street Journal reported that China’s consumer price growth slowed in November, while factory-gate prices improved but stayed in decline, suggesting persistent weak domestic demand despite Beijing’s push to revive spending.
China’s consumer-price index rose 0.2% from a year last month, compared with the 0.3% gain seen in October, according to data released Monday by the National Bureau of Statistics. Economists polled by The Wall Street Journal had expected a 0.5% increase. The producer-price index, meanwhile, fell 2.5% in November, notching a 26th straight month of decline. That compares with the prior month’s 2.9% drop and the 2.8% contraction economists had expected.
The biggest dip and flip was the  copper which sold off after the inflation data but immediately snapped back. This coincides with the seasonality in copper which according to the Moore Research Center has gone up 13 out of the last 15 years from December 6 to February the 19th.
Then we saw dips and flips in the other metals as well and we saw breakout runs in both silver and gold this morning.
Geopolitical risk factors are making gold and silver a great play and the interest in the metals has caused the CME Group to come up with an new gold contract
Bloomberg News reports that CME Group Inc. will start offering a one-ounce gold futures contract in January to meet surging demand from retail investors amid bullion’s record-breaking rally.

There has been a larger trend among retail investors to seek smaller-sized gold products as a way to diversify their portfolios as spot gold hit repeated record highs this year. The precious metal is the go-to haven asset in times of economic and financial uncertainties.

The one-ounce contract is a “great way to lower the barrier to entry in our market,” Jin Hennig, CME’s global head of metals, said in an interview. “Our clientele is also getting younger. That’s a lot more doable.”
Make sure you open up your price for futures group account today by calling 888-264-5665 or e-mail me at pflynn@pricegroup.com

Thanks,