This provides a snapshot of safe haven price movement using five indicators: 

  • S&P 500: Black
  • Dollar Index Futures: Green
  • Gold Futures: Gold
  • Silver Futures: SIlver
  • Copper: Red

 

The S&P 500 index provides a general picture of broad market performance. Dollar index futures illustrate the state of the US dollar. Gold futures help indicate the state of “safe haven” investment toward a monetary metal. Silver futures, representing both a monetary and industrial metal, can indicate safe haven investment as well as sentiment toward economic recovery. Copper futures, an industrial base metal, can indicate sentiment toward global economic recovery.

Screenshot-2021-01-21-at-10.13.35-AM-300x164 A Snapshot of Safe Haven Sentiment 1.21.21

Year-to-date, we see the broader stock market continuing to rise (SPX) as the dollar continues to fall (not surprising considering the amount of fiscal spending and money printing taking place). Copper is outperforming all other assets/indicators–perhaps reflecting sentiment toward industrial production and economic recovery as well as an inflationary trend in production costs that may have not yet found its way into costs on the consumer end. Gold held steady upon dipping last week, an indication of pause as investors weigh the effect of stimulus against the likelihood of inflation amid rising pandemic cases and unemployment. Silver is acting more like a monetary rather than an industrial metal, trailing gold’s performance, albeit with a bit more volatility.

 

Trading futures, options on futures, and forex involves substantial risk of loss and is not suitable for all investors. The use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.