COM - Commodity Roundup: Gold faces weekly fall as traders debate the Fed's next move

2023-11-10 06:04:40 ET

Precious metals ticked lower on Friday, with gold on its way to a second weekly fall after Federal Reserve Chair Jerome Powell said the central bank is ‘not confident’ it has done enough to bring inflation down. Additionally, the benchmark 10-year Treasury yield rose to 4.64%, furthering weighing on the appeal of non-yielding bullion. Palladium prices were trading below $1,000/oz for a second consecutive day.

"Moreover, with global signs of peaking inflation and gold prices hovering close to their all-time highs, some investors have been hesitant to purchase gold at recent levels, opting to wait for a more substantial price decline before making a move," as per the MoneyShow.

Among agriculture commodities, soybeans and wheat futures fell, while cocoa traded in green. U.S. grain futures fell broadly on Thursday, as traders reacted to higher than expected production data from the U.S. Department of Agriculture. "The outlook for corn has been bearish for some time now, and yesterday’s release has only reinforced this view," ING's Head of Commodities Strategy Warren Patterson said in an article.

In the energy market, Brent crude prices jumped 1%, while natgas prices eased on signs of tepid heating demand.

"The rise of geopolitical tension in the Middle East presents a challenge for the oil producing group...If tension remains high, we think the group (OPEC) is likely to keep voluntary cuts in place. However, any suggestions of easing production constraints later in 2024 would weigh on the oil price, ANZ said.

"European gas rallied after EU lawmakers called on the bloc to expand sanctions on Russia. North Asian LNG also gained after Chevron’s Gorgon plant suffered an electrical issue and disrupted exports."

Base metals meanwhile were trading in negative territory on concerns over higher interest rates following recent comments from Fed officials including Powell. Doubts over Chinese economic growth added to the week sentiment.

Recent Commodity Price Movements

• Energy

  • WTI Crude Oil ( CL1:COM ) +0.83% to $76.37.

  • Natural Gas ( NG1:COM ) -0.57% to $3.02.

  Metals

  • Palladium ( XPDUSD:CUR ) -3.50% to $957.20.

  • Silver ( XAGUSD:CUR ) -0.18% to $22.58.
  • Copper ( HG1:COM ) -0.92% to $3.60.

  Agriculture

  • Corn ( C_1:COM ) +0.11% to $468.53.
  • Wheat ( W_1:COM ) -0.25% to $579.32.
  • Soybeans ( S_1:COM ) -0.26% to $1,324.25.

  Commodity ETFs

  Gold ETFs:

  • SPDR Gold Shares ETF ( NYSEARCA: GLD )
  • VanEck Gold Miners ETF ( NYSEARCA: GDX )
  • VanEck Junior Gold Miners ETF ( NYSEARCA: GDXJ )
  • iShares Gold Trust ETF ( NYSEARCA: IAU )
  • Direxion Daily Gold Miners Index Bull 2X Shares ETF ( NYSEARCA: NUGT )
  • Sprott Physical Gold Trust ( NYSEARCA: PHYS )

  Other Metal ETFs:

  • iShares Silver Trust ETF ( NYSEARCA: SLV )
  • Sprott Physical Silver Trust ( NYSEARCA: PSLV )
  • Global X Silver Miners ETF ( NYSEARCA: SIL )
  • U.S. Copper Index Fund, LP ETF ( NYSEARCA: CPER )
  • abrdn Physical Palladium Shares ETF ( NYSEARCA: PALL )

  Oil ETFs:

  • U.S. Oil Fund, LP ETF ( NYSEARCA: USO )
  • Invesco DB Oil Fund ETF ( NYSEARCA: DBO )
  • U.S. 12 Month Oil Fund, LP ETF ( NYSEARCA: USL )
  • U.S. Brent Oil Fund, LP ETF ( NYSEARCA: BNO )
  • U.S. Natural Gas Fund, LP ETF ( NYSEARCA: UNG )
  • U.S. Gasoline Fund, LP ETF ( NYSEARCA: UGA )

  Agriculture ETFs:

  • Invesco DB Agriculture Fund ETF ( NYSEARCA: DBA )
  • Teucrium Soybean ETF ( NYSEARCA: SOYB )
  • Teucrium Wheat ETF ( NYSEARCA: WEAT )
  • Teucrium Corn Fund ETF ( NYSEARCA: CORN )

For further details see: