Commodity Snapshot shows Gold and copper prices eased slightly on Tuesday after reaching a record high, while U.S. natural gas futures gained due to decreased production and rising demand. The FOMC minutes are expected to reveal the central bank’s inflation outlook.
Fed speakers have issued a restrictive policy message, indicating slower inflation moderating than previously predicted.
Copper futures eased after climbing past $11K/ton for the first time, driven by rising investor appetite. The industry faces challenges in developing new mines, but the rally has been boosted by rising investor appetite. Open interest in global commodity markets increased by $41 billion.
Open interest in precious metals and base metals markets reached record highs, reaching approximately $215 billion, while energy markets’ open interest increased by $15 billion, largely due to futures rallies.
ING analysts report TTF’s 3.25% increase, close to EUR32/MWh, due to heavy maintenance at Norwegian facilities and robust Asian LNG demand. The natural gas market has been more buoyant, while oil prices have been relatively boring.
Energy
Crude oil (CL1:COM) -0.85% to $78.63.
Natural Gas (NG1:COM) +0.41% to $2.76.
Metals
Palladium (XPDUSD:CUR) -1.12% to $1,019.00.
Platinum (XPTUSD:CUR) -1.44% to $1,043.80.
Gold (XAUUSD:CUR) -0.42% to $2,416.05.
Agriculture
Corn (C_1:COM) -1.07% to $455.58.
Wheat (W_1:COM) -0.56% to $684.91.
Soybeans (S_1:COM) -0.86% to $1,235.88.
Must read book about investing – check here European natural gas futures reached a two-week high of €31/MWh due to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
European natural gas futures reached a two-week high of €31/MWh due to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
Gold prices are expected to gain for the first time since October due to the US Federal Reserve’s anticipated interest rate cut in June. The Reserve Bank of India’s gold holding increased to 812.3 tonnes in January, from 803.58 tonnes in December 2023. However, Commerzbank sees limited upside potential due to the mystery surrounding the price increase. It is unlikely that gold prices will fall back to February levels, as the Fed is expected to cut interest rates in June.
Spot gold was trading -0.3% lower at $2,176.89 an ounce as markets awaited the release of U.S. CPI data, which could influence the Federal Reserve’s policy path. A hotter-than-expected reading could delay the central bank’s easing cycle. Low interest rates help bullion by reducing the opportunity cost of holding the zero-yielding asset. A mixed tone prevailed across commodity sectors, with China’s economic growth concerns affecting bulks and supply concerns supporting industrial metals.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.