In this KE Report Pre-Market Daily Editorial (Aug 27), I’m joined by Darrell Fletcher, Managing Director of Commodities at Bannockburn Capital Markets, who runs the firm’s commodities trading desk.
Darrell shares his monthly insights on trading flows, hedging activity, and price trends across energy, base metals, and precious metals.
Discussion highlights:
- Summer slowdown: Why trading has been unusually flat in oil, natural gas, copper, and gold – and why Q4 could bring sharp moves.
- US dollar weakness: How a softer dollar continues to support commodities, particularly gold.
- Copper’s outlook: Stability in the $4.50/lb range, with healthy positioning and supportive fundamentals.
- Equities vs. metals: Gold and copper stocks finally catching up to metal prices, signaling possible renewed investor interest in commodities.
- Energy markets: Oil remains rangebound with weak positioning, while natural gas looks more balanced after a sharp selloff.
- Gold consolidation: Sideways trading may be setting up for another leg higher as macro risks and central bank demand remain strong.
Darrell also outlines the key macro risks – tariffs, Fed rate cuts, and geopolitical uncertainty – that could spark volatility into year-end.