US markets were closed today due to Labour Day. Volatility remains subdued as investors largely anticipate the first interest rate cut on September 18th, with the expectation already priced into the markets. The end of last week brought very positive economic data from the US, effectively erasing the recession fears that were prevalent at the beginning of last month. Early last week, the dollar declined to levels not seen since December following the Fed's comments at Jackson Hole. However, stronger-than-expected consumer spending, which accounts for more than two-thirds of US economic activity, along with stable PCE figures, created upward pressure on the dollar. With non-farm payrolls expected to confirm a resilient labour market this Friday, we anticipate the dollar could reach the 102 level again.
Another day of downward moves in the LME space. Aluminium declined to $2,424/t, while copper fell below the $9,200/t level, trading at $9,190/t at the time of writing. Nickel traded lower at $16,655/t, and zinc declined to $2,835.5/t. Tin was the biggest loser, plummeting below $31,500/t. Conversely, lead saw gains today, increasing to $2,055/t.
Gold remained mostly unchanged, confirming a comfortable support level at $2,500/oz. As the first Fed interest rate cut has already been priced in, we expect little change in the price of bullion until the cut materializes and the market gauges the Fed’s possible path forward. Silver decreased slightly, standing at $28.55/oz. Oil prices traded flat today, with WTI and Brent crude at $73.7/bbl and $77.0/bbl, respectively.
All price data is from 02.09.2024 as of 17:30
