CUR - Commodity Roundup: Gold dips as yields gain; UBS says oil demand growth likely to slow
2023-11-09 06:01:20 ET
Gold prices fell on Thursday, extending losses to a fourth-straight session, as investors weighed comments from Federal Reserve officials, and the U.S. benchmark 10- year Treasury yields rose . However, softer labor data has led to expectations the central bank had reached the end of its rate-hike cycle, which capped losses in the metal.
Markets are pricing in about a 50% chance of a rate cut of at least 25 basis points as soon as May. While gold is seen as an inflation hedge and a safe-haven during economic and political uncertainty, higher rates tend to dull the appeal of bullion which pays no interest. The metal saw a rush to safety amid heightened tensions in the Middle East, topping $2,000 an ounce at one point in October.
Fed Chair Powell is scheduled to speak at another conference on Thursday.
In the energy markets, oil and natural gas prices advanced, with Brent gaining over 1%, even as demand concerns in top consumers U.S. and China remained.
While prices are likely to stay volatile in the short term, UBS says it still expects prices to recover and trade in a $90–100/bbl range amid falling oil inventories.
"Oil prices have fallen to a four-month low, driven we believe more by supply than demand factors. European oil demand is weak, but demand growth in the US, China, and India remains robust. That said, demand growth is likely to slow down going forward."
Elsewhere, prices of most base metals traded in red due to demand uncertainty in top consumer China, amid an uneven economic recovery, which has weighed on investor sentiment.
" Iron ore surged to a seven-month high on signs of support for the real estate sector. Beijing has asked Ping An Insurance Group to take a controlling stake in the embattled developer, Country Garden, according to Reuters. This could help ease concerns of contagion in the property sector, should the developer be forced into a restructure," ANZ analysts said.
In the agriculture market, soybean and cocoa futures rose, while wheat eased.
Recent Commodity Price Movements
-
Energy
Metals
-
Palladium ( XPDUSD:CUR ) -1.66% to $1,032.42.
- Silver ( XAGUSD:CUR ) -0.09% to $22.51.
- Copper ( HG1:COM ) +0.06% to $3.62.
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
-
For further details see:
Commodity Roundup: Gold dips as yields gain; UBS says oil demand growth likely to slow