CME Group Micro Gold and Silver Products Update – October 2021

  • 7 Oct 2021
  • By CME Group
  • Topics: Metals

Micro Gold (MGC) and Micro Silver futures (SIL) update

  • Gold ultimately endured a difficult September and finished the month 3.4% lower.
  • The market started the month on relatively firm footing having recovered from the 1800 USD/oz market in late August, and later was boosted by a huge miss in the NFP numbers.
  • The sentiment was very short-lived, however, as the market sold off through the rest of the month in an environment of rising yields and strengthening USD amid some strong data releases from the US.
  • Ultimately, Gold fell to its lowest level in nearly two months, but found support at 1721 before rallying into month end on a shaky equities market and continued strong inflation numbers.
  • Silver continued to underperform Gold as its linkages to industrial usages had the market under pressure relative to the yellow metal.
  • Energy shortages and power market turmoil may have created a fear that industrial demand could suffer going forward.
  • Silver finished the month over 8% lower and dropped to its lowest level since July’20, below 22 USD/oz, before some light relief into month end.

Source: CME Group

*  APAC hours represent 8 a.m. – 8 p.m. SGT/HKT

Source: CME Group

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

Source: CME Group

*  Intraday price movement is expressed as the difference between the daily high price and the daily low price, multiplied by the contract notional size in troy ounce.

Source: CME Group

Options heatmap

Key economic events in October/November

  • October 5 – Balance of Trade – 8:30 p.m. SGT / HKT
  • October 8 – Non Farm Payrolls – 8:30 p.m. SGT / HKT
  • October 13 – US Inflation numbers – 8:30 p.m. SGT / HKT
  • October 14 – FOMC Minutes – 2:00 a.m. SGT / HKT 
  • October 15 – Retail sales – 8:30 p.m. SGT / HKT
  • October 28 – GDP Growth Rate – 8:30 p.m. SGT / HKT
  • November 1 – Manufacturing PMIs – 8:30 p.m. SGT / HKT
  • November 4 – FOMC interest rate decision + press conference – 2:00 a.m. SGT / HKT 
  • November 5 – Non Farm Payrolls – 8:30 p.m. SGT / HKT
  • November 10 – US Inflation numbers – 9:30 p.m. SGT / HKT  

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