Gold prices ticked lower on Thursday, snapping three consecutive session of gains after Federal Reserve Chair Jerome Powell pushed back strongly against expectations of a U.S. rate cut by March. However, losses were limited against the current geo-political backdrop supported bids for safe-haven assets.
The yellow metal is considered a hedge against inflation and economic uncertainties but higher rates increase the opportunity cost of holding the non-yielding asset. Spot gold (XAUUSD:CUR), which was down -0.26% to $2,031.91 an ounce by 6 am ET, fell 1.2% in January, it’s first monthly decline in four.
In the energy market, oil prices were trading higher, as some traders held on to hopes of rate cuts and on new support measures for China’s embattled property market. Sentiment was also supported by comments from the International Energy Agency. Executive Director, Fatih Birol, said global oil demand will likely increase by 2mb/d in 2024, similar to the growth achieved in 2023, ANZ reported. JP Morgan said it continues to project Brent oil reaching high $80s by May based on its optimistic view on demand, especially China. Geopolitics aside, JPM’s view remains that 2024 will be fundamentally a “healthy year for the oil market”, adding that, the lows are behind.
Global gas prices pushed higher amid rising Middle East tensions. The energy market remains on edge as it waits for a US response to the drone attack on American troops in Jordan, ANZ analysts said.
However, ING reported that, base metals were further pressurised on slowing demand concerns in China ahead of the Lunar New Year holiday next weekend. China’s post-Covid economic recovery has been uneven, with a significant divergence seen in the trajectory of different-sized enterprises. LME data shows that cancelled warrants for aluminium jumped 17,575 tonnes (the biggest daily addition since 9 January) for a second consecutive day to 219,000 tonnes as of yesterday, the highest since 21 December, the report said.
Recent Commodity Price Movements
Energy
- Crude oil (CL1:COM) +0.76% to $76.43.
- Natural Gas (NG1:COM) +2.10% to $2.14.
Metals
Agriculture
Commodity ETFs
Gold ETFs:
- SPDR Gold Shares ETF (GLD)
- VanEck Gold Miners ETF (GDX)
- VanEck Junior Gold Miners ETF (GDXJ)
- iShares Gold Trust ETF (IAU)
- Direxion Daily Gold Miners Index Bull 2X Shares ETF (NUGT)
- Sprott Physical Gold Trust (PHYS)
Other Metal ETFs:
- iShares Silver Trust ETF (SLV)
- Sprott Physical Silver Trust (PSLV)
- Global X Silver Miners ETF (SIL)
- U.S. Copper Index Fund, LP ETF (CPER)
- abrdn Physical Palladium Shares ETF (PALL)
Oil ETFs:
- U.S. Oil Fund, LP ETF (USO)
- Invesco DB Oil Fund ETF (DBO)
- U.S. 12 Month Oil Fund, LP ETF (USL)
- U.S. Brent Oil Fund, LP ETF (BNO)
- U.S. Natural Gas Fund, LP ETF (UNG)
- U.S. Gasoline Fund, LP ETF (UGA)
Agriculture ETFs:
- Invesco DB Agriculture Fund ETF (DBA)
- Teucrium Soybean ETF (SOYB)
- Teucrium Wheat ETF (WEAT)
- Teucrium Corn Fund ETF (CORN)
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