CUR - Commodity Roundup: Gold tops $2000/oz; Oil down in pre-Thanksgiving trade
2023-11-22 06:02:38 ET
Gold prices ( XAUUSD:CUR ) traded above $2,000 an ounce on Wednesday as markets assessed the Fed minutes from the October 31-November 1st meeting, which did little to change future rate expectations, while a firmer dollar capped further gains in bullion.
Fed policymakers at their most recent meeting united around a strategy to “proceed carefully” on future interest-rate moves and base any further tightening on progress toward their inflation target. Traders are now pricing the Fed to start cutting interest rates next year, buoyed by signs of cooling inflation. The Bank of England officials reiterated higher-for-longer stance on interest rates.
Elsewhere, Chinese authorities are drafting a list of 50 property developers eligible for financing but this may not guarantee the firms will avoid liquidity issues next year according to Bloomberg Intelligence. The hopes of support and stimulus however, have helped base metals gain to some extent. The move could help steel demand from the construction sector to stabilise, although a seasonal decline in construction activity will act as a constraint to steel demand, ANZ analysts said in a note.
Strong demand from new energy sector and renewed supply issues pushed copper prices towards $8,500/t. "China’s spot premium moved higher amid ongoing inventories withdrawal at the SHFE. This was contrary to rising inventories at the LME. Renewed supply risks in Peru and Panama raised concerns of tightening mine supplies and supported prices. However, other metals remained under pressure. Nickel traded below $17,000/t level due to weak demand and strong supply," ANZ reported. Copper prices were trading below a two-month peak on the day as the dollar held strong.
Energy investors meanwhile kept their eyes glued to the upcoming OPEC+ ministers meeting on November 26, to review policy for the year ahead. Both benchmarks were trading lower in quiet pre-U.S. Thanksgiving holiday trading.
"On Sunday, we expect Saudi Arabia and Russia to extend their voluntary production/export cuts through 1Q24. Our view on demand in 2024 suggests that as long as the broader OPEC+ maintains the 2 mbd cut in quotas agreed in November 2022 and the extra 1.7 mbd of curbs from some members pledged in April 2023, Saudi and Russia will be able to unwind some of their 1.3 mbd voluntary reductions starting in April 2024," JPM Commodities Research said.
Among agriculture commodities, cocoa and wheat inched higher, while soybean fell.
Recent Commodity Price Movements
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Energy
Metals
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Palladium ( XPDUSD:CUR ) -0.48% to $1,073.16.
- Silver ( XAGUSD:CUR ) +0.50% to $23.85.
- Copper ( HG1:COM ) -0.59% to $3.79.
Agriculture
Commodity ETFs
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Other Metal ETFs:
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Agriculture ETFs:
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Commodity Roundup: Gold tops $2,000/oz; Oil down in pre-Thanksgiving trade