CUR - Commodity Roundup: Gold poised for monthly gain oil up as OPEC+ talks loom
2023-11-30 06:00:40 ET
Spot gold prices ( XAUUSD:CUR ) on Thursday were headed for a second consecutive monthly gain ( +3.4% ) supported by expectations that an end to the U.S. Federal Reserve’s restrictive interest rate hike cycle would soon come to an end, and keep the dollar and yields under check. Bullion scaled a seven-month peak this week on bets of rate cuts in 2024. However, prices were trading lower for a second consecutive session as a stronger U.S. dollar index ( DXY ) made bullion more expensive for overseas investors. Third quarter U.S. GDP data provided encouraging signs for the economy, easing recession fears, even as Fed officials provided mixed messages on monetary policy.
"The improving data is earning the possibility of some recalibration of policy next year. That's what the market is pricing in. If the data continues on this path it will earn modest rate cuts next year. That's helping to ignite risk appetites," according to Garrett Melson , a portfolio strategist at Natixis Investment Managers Solutions. Spot gold was down -0.28% at $2,038.83 an ounce by 6 am ET.
Meanwhile in the energy market, oil and natural gas prices were trading in green despite a stronger dollar, while investors remained cautious ahead of expected production cuts by the OPEC+ group. In terms data, weaker-than-expected Chinese factory numbers underscored slowing growth in the world's second largest economy. Members of OPEC+ are due to hold a policy meeting on Thursday. Talks ahead of the meeting were focusing on additional production cuts, although details were yet to be agreed, sources close to the group told Reuters. As per a poll , oil prices will face an uphill struggle in 2024 as global growth risks, including China's patchy economic recovery, restrain demand.
Among base metals, copper prices were trading lower , although were on track for their first monthly gain in four months on hopes of demand recovery and China's stimulus measures. ANZ in a note said Iron ore was steady as optimism over steel demand offset concerns of market intervention by Beijing. "A Mysteel report showed China’s new commercial housing transactions in the week to 26 November rose by 14.4% w/w in ten key cities including Shanghai and Beijing. However, the threat of regulatory oversight continues to hang over the market."
Elsewhere among agriculture commodities, soybean and wheat prices fell, while cocoa futures were trading higher. The U.S. Department of Agriculture on Wednesday said it would start accepting applications for an initial $300 million in funding to help U.S. agricultural exporters break into new markets outside China, Canada, Mexico and the European Union.
Recent Commodity Price Movements
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Energy
Metals
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Palladium ( XPDUSD:CUR ) -1.23% to $1,014.58.
- Silver ( XAGUSD:CUR ) +0.02% to $25.01.
- Copper ( HG1:COM ) +0.12% to $3.79.
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
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Commodity Roundup: Gold poised for monthly gain, oil up as OPEC+ talks loom