CME Group Micro Gold, Silver and Copper Products Update

Highlights

Recent dovish remarks from the U.S. Federal Reserve officials have raised the expectation of rate cut coming sooner than later among the market participants. On top of that, lower-than-expected NFP, softer headline inflation rate and weaker U.S. dollar provided more reasons for the gold price to rally. Gold price eventually ended the month at $2,057.20/oz., up 3.2% MoM.
In addition to the above factors that are bullish for precious metals, concern around supply due to reduced output from key silver producers and increased demand of silver in the technology sector drove the prices to $25.660/oz., up 11.8% MoM.
Copper broke out of the three-month price decline trend on the back of China’s renewed support for the property sector, which in turn boosted the red metal demand outlook of the world’s top copper consuming country. At the same time, the weakening U.S. dollar made copper more affordable for non-U.S. dollar buyers and led copper prices to finish the month at $3.8505/lb., up 5.5% MoM.
Micro Gold (MGC) futures and Micro Silver (SIL) futures continued their strong average daily volume (ADV) performance with 62,162 contracts, up 23% QoQ, and 12,043 contracts, up 22% QoQ, respectively. The robust liquidity allows market participants to hedge/take positions effectively.

Micro Gold (MGC), Micro Silver (SIL) and Micro Copper (MHG) Futures Update

MGC, SIL and MHG price movement and daily range (expressed in terms of one lot notional)

*Intraday price movement is expressed as the difference between the daily high price and the daily low price multiplied by the contract notional in troy ounce (MGC and SIL) and pounds (MHG).

Options Heatmap (Change in OI from November 1 to November 30, 2023)

View current open interest and changes in volume and OI by strike, put or call, and expiration.

Key Economic Events in December 2023/January 2024:

Key Economic Event	ET	GMT / BST	SGT / HKT
U.S. ISM Manufacturing PMI	Dec 1, 10.00 a.m.	Dec 1, 3.00 p.m.	Dec 1, 11.00 p.m.
China Balance of Trade	Dec 6, 10.00 p.m.	Dec 7, 3.00 a.m.	Dec 7, 11.00 a.m.
U.S. Non Farm Payrolls and Unemployment Rate	Dec 8, 8.30 a.m.	Dec 8, 1.30 p.m.	Dec 8, 9.30 p.m.
China Inflation Rate YoY	Dec 8, 8.30 p.m.	Dec 9, 1.30 a.m.	Dec 9, 9.30 a.m.
U.S. Inflation Numbers	Dec 12, 8.30 a.m.	Dec 12, 1.30 p.m.	Dec 12, 9.30 p.m.
U.S. Fed Interest Rate Decision and Fed Press Conference	Dec 13, 2.00 p.m.	Dec 13, 7.00 p.m.	Dec 14, 3.00 a.m.
U.S. Core PCE Price Index	Dec 22, 8.30 a.m.	Dec 22, 1.30 p.m.	Dec 22, 9.30 p.m.
China NBS Manufacturing PMI	Dec 30, 8.30 p.m.	Dec 31, 1.30 p.m.	Dec 31, 9.30 a.m.
China Caixin Manufacturing PMI	Jan 1, 8.45 p.m.	Jan 2, 1.45 a.m.	Jan 2, 9.45 a.m.
U.S. ISM Manufacturing PMI	Jan 3, 10.00 a.m.	Jan 3, 3.00 p.m.	Jan 3, 11.00 p.m.
FOMC Minutes	Jan 3, 2.00 p.m.	Jan 3, 7.00 p.m.	Jan 4, 3.00 a.m.
U.S. Non Farm Payrolls	Jan 5, 8.30 a.m.	Jan 5, 1.30 p.m.	Jan 5, 9.30 p.m.
U.S. Inflation Numbers	Jan 11, 8.30 a.m.	Jan 11, 1.30 p.m.	Jan 11, 9.30 p.m.
China Inflation Rate YoY	Jan 11, 8.30 p.m.	Jan 12, 1.30 a.m.	Jan 12, 9.30 a.m.
China Balance of Trade	Jan 12, 10.00 p.m.	Jan 13, 3.00 a.m.	Jan 13, 11.00 a.m.
China Industrial Production YoY	Jan 16, 9.00 p.m.	Jan 17, 2.00 a.m.	Jan 17, 10.00 a.m.
U.S. Core PCE Price Index	Jan 26, 8.30 a.m.	Jan 26, 1.30 p.m.	Jan 26, 9.30 p.m.
China NBS Manufacturing PMI	Jan 30, 8.30 p.m.	Jan 31, 1.30 a.m.	Jan 31, 9.30 a.m.
U.S. Fed Interest Rate Decision and Fed Press Conference	Jan 31, 2.00 p.m.	Jan 31, 7.00 p.m.	Feb 1, 3.00 a.m.
China Caixin Manufacturing PMI	Jan 31, 8.45 p.m.	Feb 1, 1.45 a.m.	Feb 1, 9.45 a.m.

Source: CME Group, Quikstrike

Useful resources

CME FedWatch

Stay up-to-date with the latest probabilities of FOMC rate moves with the CME FedWatch Tool.

COT tool

The Commitments of Traders (COT) tool can provide a comprehensive and highly configurable graphical representation of the CFTC's report on market open interest.

Build and test your trading strategies in a simulated environment with free pricing and analytics tools for CME Group markets. Choose from three ways to access exclusive, web-based tools developed by QuikStrike®.

Disclaimer

Exchange traded derivatives and cleared over-the-counter (“OTC”) derivatives are not suitable for all investors and involve the risk of loss. Exchange traded and OTC derivatives are leveraged instruments and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money initially deposited. This communication does not (within the meaning of any applicable legislation) constitute a Prospectus or a public offering of securities; nor is it a recommendation, offer, invitation or solicitation to buy, sell or retain any specific investment or service.

The content in this communication has been compiled by CME Group for general purposes only and is not intended to provide, and should not be construed as advice. It does not take into account your objectives, financial situation or needs, and you should obtain appropriate professional advice before acting on or relying on the information set out in this communication. Although every attempt has been made to ensure the accuracy of the information within this communication as of the date of publication, CME Group assumes no responsibility for any errors or omissions and will not update it. Additionally, all examples and information in this communication are used for explanation purposes only and should not be considered, investment advice, the results of actual market experience, or the promotion of any particular products or services. All matters pertaining to rules and specifications herein are made subject to and superseded by official Chicago Mercantile Exchange Inc. (“CME”), the Chicago Board of Trade, Inc. (“CBOT”), the New York Mercantile Exchange, Inc. (“NYMEX”), and the Commodity Exchange, Inc. (“COMEX”) rulebooks or, as applicable, the respective Rulebooks of CME Group’s certain other subsidiary trading facilities. Current rules should be consulted in all cases including matters relevant to contract specifications.

CME Group does not represent that any material or information contained in this communication is appropriate for use or permitted in any jurisdiction or country where such use or distribution would be contrary to any applicable law or regulation. This communication has not been reviewed or approved by any regulatory authority and access shall be at the liability of the user.

In Australia, each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), Board of Trade of the City of Chicago Inc. (ARBN 110 594 459), New York Mercantile Exchange, Inc. (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.

In Hong Kong, CME, CBOT, NYMEX and COMEX are authorized by the Hong Kong Securities and Futures Commission (the "SFC") to provide Automated Trading Services ("ATS") via the CME GLOBEX system, and CME is authorized by the SFC to provide ATS via the CME Clearing System, under Part III of the Securities and Futures Ordinance (the "SFO").

In Japan, CME has a Foreign Clearing Organisation (FCO) license under the Financial Instruments and Exchange Act of Japan.

In Singapore, CME, CBOT, NYMEX and COMEX are regulated as a recognized market operator and CME is regulated as a recognized clearing house under the Securities and Futures Act (Chapter 289) ("SFA"). Save as aforesaid, none of the CME Group entities are licensed to carry on regulated activities under the SFA or to provide financial advisory services under the Financial Advisers Act (Chapter 110) in Singapore.

None of CME Group entities are registered or licensed to provide, nor does it purport to provide, financial services of any kind in some jurisdictions, including, but not limited to, India, Korea, Malaysia, New Zealand, People’s Republic of China, Philippines, Thailand, and Vietnam and in any jurisdiction where CME Group is not authorized to do business or where such distribution would be contrary to the local laws and regulations.

You are advised to exercise caution in relation to the information contained herein. If you are in any doubt about any of the contents of this communication, you should obtain independent professional advice.

In Hong Kong, CME Group is not licensed to carry on business in dealing or advising on futures contracts under the SFO. This communication is for distribution in Hong Kong solely to corporations licensed by the SFC under Part V or authorized under Part III of the SFO.

In Japan, this communication is for distribution solely to certain qualified sophisticated investors as set forth in the Commodities Futures Act of Japan (Law No. 239 of 1950, as amended) and the related rules, as appropriate. Other than that, the information contained in this communication is not directed at any person in Japan and is not intended for marketing or soliciting Japanese customers to trade or use any specific CME products or services.

In the Republic of Korea, this communication is for distribution solely to “professional investors” (as defined in Article 9(5) of the Financial Investment Services and Capital Markets Act and related rules) in response to a request from such professional investors or through a licensed investment broker.

In the People’s Republic of China, this communication is provided to the reader only and shall not be copied or redistributed within the People’s Republic of China for any other purpose. No information contained in this communication constitutes or leads to an offer to provide or sell any financial service or product, a recommendation (express or implied) to take any action in respect of any financial product, or any investment advice or market forecast.

This communication is for distribution in Singapore solely to certain institutional investors (such as persons holding a capital markets services licence for trading in futures contracts or exempt from such requirements under the SFA), to accredited investors and to expert investors (each as defined in the SFA).

CME Group, the Globe Logo, CME, Globex, E-Mini, CME Direct, CME DataMine and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago, Inc. NYMEX and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc.

BrokerTec Americas LLC (“BAL”) is a registered broker-dealer with the U.S. Securities and Exchange Commission, is a member of the Financial Industry Regulatory Authority, Inc. (www.FINRA.org), and is a member of the Securities Investor Protection Corporation (www.SIPC.org). BAL does not provide services to private or retail customers.

Certain CME Group subsidiaries are authorised and regulated by regulatory authorities. Certain of those subsidiaries are required to retain records of telephone conversations and other electronic communications for a period of 5 to 7 years where required by certain regulation, copies of which are available on request (which may be subject to a fee). For further regulatory information please see www.cmegroup.com.

Markets Home

Market Data Home

Services Home

Insights Home

Education Home