COM - Commodity Roundup: Gold gains 1% on Middle East risks oil jumps 4%; WASDE report in focus

2024-01-12 06:05:33 ET

Gold prices rose on Friday as investors sought to reduce exposure to riskier markets amid escalating Middle East tensions, which drove safe-haven flows into bullion, but was set for a second-straight weekly loss as investors reassess whether interest rates will fall as soon as March. Spot gold ( XAUUSD:CUR ) gained +0.93% to $2,046.95 by 6 am ET.

The consumer price index, the most widely used measure of inflation, increased 0.3% in December. Economists had expected a 0.2% reading amid an easing of inflationary pressures. The CPI print closed 2023 up 3.4%, slightly above expectations.

While gold is considered a safe store of value during political and economic turmoil, higher interest rates tend to dull the appeal of non-yielding bullion. Investors will next look out for U.S. producer prices data, due at 8:30?am ET.

Meanwhile in the energy complex, Brent crude climbed nearly 4% as the United States and Britain carried out air and sea strikes on Houthi military targets in Yemen in response to attacks by the Iran-backed group on shipping in the Red Sea. On Thursday, the benchmarks rose nearly 1%, pointing to a second straight weekly gain.

The Houthi attacks in the Red Sea have disrupted international commerce on the key route between Europe and Asia, which accounts for about 15% of the world's shipping traffic, Reuters reported.

Among base metals, copper prices ticked lower against a stronger dollar, but were headed for a weekly gain amid hopes of a rate cut in China to support economic growth, which fuelled demand hopes for metals in their biggest consuming market.

China's trade surplus meanwhile increased to $75.34 billion in December 2023 from $70.65 billion in the same period the previous year, surpassing market forecasts of $74.75 billion, marking the largest trade surplus in three months, as exports grew more than imports, data from the Customs Bureau showed on Friday.

Elsewhere, soybean, cocoa, wheat f utures traded in green ahead of USDA's WASDE report . Traders will likely be most interested in USDA's estimates of South American corn and soybean production.

Recent Commodity Price Movements

• Energy

  • WTI Crude Oil ( CL1:COM ) +4.12% to $74.98.
  • Natural Gas ( NG1:COM ) +0.79% to $3.12.

  Metals

  • Palladium ( XPDUSD:CUR ) +0.06% to $988.66.

  • Silver ( XAGUSD:CUR ) +1.13% to $23.01.
  • Copper ( HG1:COM ) -0.13% to $3.78.

  Agriculture

  • Corn ( C_1:COM ) +0.11% to $458.24.
  • Wheat ( W_1:COM ) +0.84% to $608.79.
  • Soybeans ( S_1:COM ) +0.53% to $1,243.00.

  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: