Gold continues its quest to try to reach our 9 (and many others) target at near $3000 an ounce. Another upside breakout surge along with bitcoin in part is being driven by increasing odds that Donald J Trump might be returning to the White House. Trumps realization that Crypto as well as artificial intelligence and data centers are going to be part of the future which should offer support to almost every metal, both industrial as well as precious.

And while silver was dragged out of its complacency by the move in gold, it is still acting heavily in comparison. While gold is on a Sar Trek-like mission to explore new galaxies, silver can’t keep pace.
Perhaps silver is under pressure on concerns that the Trump victory will mean less support for silver heavy green energy projects in solar panels where we need a lot of silver. Also, the reversals of subsides for the failing electric car push.

Image Source: Unsplash

Silver is used in photovoltaic cells (PVs) for solar power and on all electronic contacts in electric and hybrid vehicles (EVs)1234. Silver has the highest electrical conductivity among all metals, making it an ideal metal for use in solar cells and the electronic components of electric vehicles according to experts.
Silver powder is turned into a paste and loaded onto a silicon wafer to carry the electricity for immediate use or store it in batteries for later consumption3. In 2011, 67 Moz of silver was used in photovoltaic (PV) cells for solar energy3. An Australian study projects solar cells may use most of the world’s silver reserves by 2050, yet that may change if Trump takes away government subsides.

Reuters is reporting that “ Global gold demand excluding over-the-counter (OTC) trading was steady year-on-year at 1,176.5 metric tons in the third quarter as higher investment activity offset reduced jewellery consumption, the World Gold Council (WGC) said on Wednesday.

Spot gold prices are up 34% so far this year, heading for the highest annual growth since 1979, due to uncertainty surrounding next week’s U.S. presidential election, lower interest rates, geopolitical risks and portfolio diversification. Gold hit a record of $2,771.61 per ounce on Tuesday.

“Resurgent professional flows combined with solid bar and coin investment will offset weaker consumer demand and slower central bank buying” for gold in 2024, the WGC, an industry body whose members are global gold miners, said in a quarterly report.

Total demand for gold, including opaque OTC trading, rose 5% to 1,313 tons, a record for a third quarter, the WGC said. It estimates the OTC flows – investment from institutional, high-net-worth investors and family offices – at 136.5 tons in July-September, up 97%.

Physically-backed gold exchange traded funds (ETFs) saw the first positive quarter since the first quarter of 2022 with inflows of 95 tons, while bar and coin investment fell 9%.
Gold jewelry consumption, the biggest category of physical demand, fell by 12% in the third quarter despite strong growth in major import market India, while global central banks, which actively bought gold in 2022-2023, reduced purchases by 49%.
Buzz Buzz reported that “New Delhi: Copper futures on Tuesday fell 0.43 per cent to Rs834.50 per kilogram as participants cut their positions amid muted demand in the domestic market. On Multi Commodity Exchange (MCX), copper contracts for November delivery eased by Rs3.60 or 0.43 per cent to Rs834.50 per kg in a business turnover of 5,776 lots.
Analysts said trimming of positions by speculators amid a muted demand in the spot market mainly dragged down copper prices in the futures trade.

Copper still has had some concerns about the economy in China. There are also some concerns that trump could start a trade war with China which could be negative for copper.
I feel like the long-term outlook for copper. Copper is still hoping for some more stimulus news from China.
Buzz Buzz reports that Aluminum futures fall on low demand.
Aluminum prices slipped 35 paise to Rs242.65 per kilogram in the futures market, as participants trimmed their positions on a weak trend in the spot market. On MCX, aluminum for delivery in November fell 35 paise or 0.85 per cent to Rs242.65 per kg in 3,512 lots.
Analysts said cutting down of positions by participants on easing demand from consuming industries mainly kept aluminum prices lower.
I think aluminum could turn out to be a sleeping giant. Keep an eye on the charts for a turn.

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