CUR - Commodity roundup: Gold and oil extends gain as Fed turns dovish

2023-12-14 06:12:06 ET

Gold prices continued in green territory on Thursday, extending notable previous-day gains as the Fed signaled an end to the tightening cycle, which pushed the US dollar and interest rates lower. The US dollar ( DXY ) touched a four-month low as the Fed maintained a dovish stance. Markets are now pricing in around a 73% chance of a rate cut in March from the Fed, according to the CME FedWatch tool. Spot gold ( XAUUSD:CUR ) was up +0.32% to $2,034.35 by 6 a.m. ET.

Investors are also keenly looking at interest rate decisions from the European Central Bank and the Bank of England. Among other precious metals, silver, platinum, and palladium also climbed.

The energy segment also moved higher, with a bigger-than-expected weekly withdrawal from U.S. crude storage and a weaker dollar support price rise. Total oil and product inventories have declined the most since October. Brent futures were up 1.6%, to $75.41 a barrel . U.S. Natural gas futures also moved higher to $2.36.

Among base metals, copper prices also ticked higher, up 2.8% to $3.81 against a stronger dollar and weak economic growth in China. More recently, inventories in LME warehouses have fallen for three consecutive weeks. Falling treatment charges are also suggesting tightness in the concentrate market, ANZ Research said. Lead prices ended marginally lower ; aluminum and zinc gained.

Elsewhere, among agriculture commodities, soybean and cocoa futures fell , while wheat prices ticked higher.

More on Commodities

• Gold: A Major Bearish Reversal Pattern
• Gold Price Fluctuations: A Deep Dive Into Recent Market Trends
• Commodity Roundup: Gold steady with eyes on Fed; UBS sees near-term oil price volatility

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