Core Insights - The total value of global commodity futures open interest fell for the first time since August, decreasing by 1.7% (a reduction of $28.49 billion) to $1.6 trillion, primarily due to an 8% weekly drop in crude oil and refined petroleum product prices [1] - The precious metals market saw a net position decrease of $2.9 billion, bringing the total to $111 billion, while the base metals market net position increased by $2.2 billion to $30 billion [1] - Gold prices have risen 3.4% to nearly $3,900 per ounce as of October 3, with historical trends indicating that gold typically performs well during Federal Reserve rate cut cycles [1] Commodity Market Overview - The total value of open interest in the precious metals market remained stable, slightly increasing by 0.4% to $313 billion as of October 3, despite an overall net outflow of $6.9 billion across various traders [1] - The gold market experienced a significant outflow of $6.4 billion, partially offset by an inflow of $0.2 billion in palladium [1] Investment Strategy Insights - Historical data suggests that adjustments occurring 2 to 3 months after the first rate cut often present good opportunities to increase gold holdings [1] - A $10 billion increase in quarterly nominal gold demand could lead to a price increase of approximately 3% per quarter, indicating that even a slight shift from the $29 trillion U.S. Treasury market to gold could push prices above $5,000 per ounce [1]