CUR - Commodity Roundup: Middle East risks keep gold supported as traders weigh U.S. data

2023-10-26 06:00:00 ET

Gold prices (XAUUSD:CUR ) advanced on Thursday despite a stronger dollar and higher bond yields, as concerns about the long implication of geopolitical tensions in the Middle East lifted bullion's safe haven appeal. Investors also braced for a host of key economic data and monetary policy decision from the European Central Bank. Spot gold was trading +0.54% to $1,990.32 an ounce by 6 am ET.

New-home sales in the U.S. surged to a 19-month high in September, bolstering expectations of higher-for-longer rates ahead of the next Federal Open Market Committee meeting on November 1.

Crude oil prices meanwhile slipped once again after gaining some ground on Wednesday on Middle East tensions, as the dollar index ( DXY ) held strong and U.S. crude stockpiles at the Cushing hub expanded by the most since June.  "Geopolitical risks will continue to drive energy markets as Israel prepares for a ground assault in Gaza," ANZ analysts said in a note.

WTI Midland remained weak, trading at the biggest discount to Cushing since December last year, while Brent call option volumes outpaced those of bearish puts for a 24th consecutive session, remaining on the longest such run since February, Bloomberg reported.

Among industrial metals, copper prices rose as traders reviewed the potential benefit of a recent Chinese stimulus. China's move to approve a 1 trillion yuan in sovereign bond issuance to improve urban infrastructure had lifted metals prices earlier this week.

In the agriculture market, soybeans, wheat and cocoa prices moved higher.

According to a report released by the U.S. Department of Agriculture’s staff posted in Kyiv, "Marketing year ( MY ) 2023/24 is expected to be another favorable year for grain production in Ukraine, with production volumes exceeding the ones for the previous year, particularly for corn." "The corn production estimate for the crop currently being harvested is around 30.7 MMT (million metric tons) for MY2023/24, a 17% increase compared to the previous MY."

Recent Commodity Price Movements

• Energy

  • WTI Crude Oil ( CL1:COM ) -0.84% to $84.67.

  • Natural Gas ( NG1:COM ) -0.80% to $2.99.

  Metals

  • Palladium ( XPDUSD:CUR ) -0.42% to $1,120.84.

  • Silver ( XAGUSD:CUR ) +0.86% to $23.09.
  • Copper ( HG1:COM ) +0.79% to $3.60.

  Agriculture

  • Corn ( C_1:COM ) +0.20% to $480.94.
  • Wheat ( W_1:COM ) +1.35% to $576.16.
  • Soybeans ( S_1:COM ) +0.17% to $1,290.50.

  Commodity ETFs

  Gold ETFs:

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

  Other Metal ETFs:

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

  Oil ETFs:

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

  Agriculture ETFs:

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

For further details see: