PALL - Commodity Roundup: Oil rises ahead of Fed verdict gold traders turn cautious

2023-11-01 05:59:28 ET

Oil prices rose on Wednesday as investors braced for rate decision from the U.S. Federal Reserve and other central banks, while focusing on the developments in the Israel-Hamas war.

Investors also looked ahead to a number of economic data out of the United States to understand the impact of the present high interest rate environment, which usually tends to weigh on oil demand and slow economic growth. Crude oil had its worst monthly decline this year in October, falling 10.69%, while Brent futures snapped four-consecutive month of gains even as the current geopolitical situation threatened to disrupt Middle East supply.

Natural gas futures edged lower after gaining 22% in October amid extreme price volatility and changing weather patterns.

Gold prices meanwhile ticked down slightly as investors traded with caution ahead of the Fed decision, which some expecting another hold in interest rate decision. Gold prices are up about 9% so far this year, supported by recent flight to safety Investor fear is again moving the markets as tensions rise in the Middle East, along with the war in Ukraine, and still high inflation. However, rising interest rates also curb the appeal of gold.

"The goal of a flight to safety trade is to preserve capital and mitigate risks until more favorable market conditions return," Steven Cress, Head of Quantitative Strategies at Seeking Alpha wrote in a recent article.

Among base metals, copper prices eased despite a softer dollar, while investors sentiment was dampened by an unexpected contraction in China's factory activity. Copper registered a third consecutive monthly loss in October driven by economic uncertainty in top metals consumer China and other parts of the world.

Elsewhere, wheat prices rose, while cocoa and soybeans fell among agriculture commodities. The US Department of Agriculture (USDA)’s attaché in Argentina has reduced its outlook for the country's wheat, barley and corn production. USDA on Monday rated 47% of the U.S. winter wheat crop in good to excellent condition, the highest for this time of year since 2020, reflecting improved soil moisture following a three-year drought in the Plains.

Recent Commodity Price Movements

• Energy

  • WTI Crude Oil ( CL1:COM ) +1.26% to $82.04.

  • Natural Gas ( NG1:COM ) -1.40% to  $3.52.

  Metals

  • Palladium ( XPDUSD:CUR ) +0.24% to $1,117.73.

  • Silver ( XAGUSD:CUR ) -1.16% to $22.63.
  • Copper ( HG1:COM ) -0.14% to  $3.64.

  Agriculture

  • Corn ( C_1:COM ) +0.19% to $479.67.
  • Wheat ( W_1:COM ) +0.92% to $561.37.
  • Soybeans ( S_1:COM ) -0.10% to $1,285.75.

  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: