Gold surged to a new high on Thursday, August 1, 2024, reaching an unprecedented peak amid soaring demand for safe-haven assets.
The global landscape, fraught with geopolitical conflicts in the Middle East and persistent concerns over economic growth, fueled this demand.
Additionally, the Federal Reserve’s anticipated interest rate cuts in September further bolstered gold’s allure.
On that day, gold futures for December experienced a 0.31% rise, closing at $2,480.80 per troy ounce on the Comex division of the New York Mercantile Exchange (Nymex).
The session’s momentum didn’t stop there, as prices climbed over 1%, setting a record at $2,506.60 per troy ounce.
Rabobank’s report captured this market trend, attributing the initial surge in gold prices to the market’s risk-averse reaction to intensified geopolitical tensions.
Market analyst Samer Hasn from XS.com pointed out the catalysts behind this rally: a notable contraction in U.S. industrial activity and a sudden spike in jobless claims.
These claims hit their highest level in a year, underscoring signs of economic weakening.
According to analysts at SP Angel, the poor U.S. macroeconomic data and the looming prospect of Fed rate cuts have pressured the Treasury yield curve.
This scenario, in turn, mirrored Gold‘s impressive performance. MUFG analysts observed that gold stood out among commodities in July, thriving on the surge in demand for safe-haven assets.
This bolstered inflows into gold ETFs, which saw a 5.73% increase in gold value that month.
Performance of Other Metals and Commodities
In contrast to gold’s stellar performance, other metals and commodities displayed varying results:
Silver:
In 2024, silver recorded a substantial 35% increase, fueled by robust demand and favorable market conditions.
Although it faced a slight dip last week, silver continues to significantly outperform gold. It closed around $32.00 per ounce as of May 21.
Copper:
Unlike gold, copper didn’t see an upward trend. In August 2024, copper traded at about $3.85 per pound, marking a 0.5% decline.
The metal’s performance was dampened by concerns over industrial demand and global economic growth.
Oil:
Oil showed a mixed performance. Brent crude, the international benchmark, traded at $82.30 per barrel, declining by 0.7% for the day.
Despite geopolitical tensions, which typically boost oil prices, the market faced downward pressure due to uncertainty about global economic conditions and diminishing demand.
To sum up, while gold thrived as a sought-after safe-haven asset amid geopolitical and economic uncertainties, silver excelled in percentage growth.
However, this growth was driven by strong industrial demand and favorable market dynamics.
Conversely, copper and oil struggled amid concerns over industrial activity and global economic health.
Live Market IntelligenceCommodities — Live Market Board
Rio Times · Live Market Intelligence
Commodities — Live Market Board
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| COPPER | 6.61 | +0.03% | +46.70% | 6.61 | 6.71 | 6.61 | 39,543 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
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