Become a logicalchat Member

Latest Post

Will Mortgage Rates Go Down in 2025 in Canada?

In recent years, mortgage rates in Canada have been a topic of concern for many homeowners and potential buyers. With rising interest rates, many...

Your story starts here. Sign up and let's connect in ways that truly matter!

HomeUncategorizedCommodity Snapshot: JPMorgan Declares 'Structural' Bullish Outlook on Gold.

Commodity Snapshot: JPMorgan Declares ‘Structural’ Bullish Outlook on Gold.

Commodity Snapshot shows Gold prices rose after a drop, boosted by a softer U.S. dollar, as investors prepared for inflation data this week, while oil prices also traded green.

Palladium futures rose 11% on Friday, supported by tight supplies, and are primarily used in autocatalysts for emissions reduction. ETFs include PALL, PPLT, and SPPP.

J.P. Morgan remains bullish on gold and silver, with a target of $2,600/oz and $34/oz in 2025. Copper levels present a good re-entry point towards $11,500 by 3Q25.

JPM’s investment bank has updated its 2025 natural gas price forecast to $4.30/MMBtu, following a 12% rally. The commodity’s price is expected to reach its $4 target by September, highlighting the timing of entry.

Oil prices are strengthening due to growing confidence that global oil inventories will decrease during summer, seasonal demand for oil products, Ukrainian drone attacks on Russian refineries, and EU sanctions against Russia over Ukraine. The U.S. personal consumption expenditures price index is also closely monitored.

Energy

Crude oil (CL1:COM) +0.52% to $81.01.
Natural Gas (NG1:COM) -0.28% to $2.71.

Metals

Palladium (XPDUSD:CUR) +4.45% to $951.50.
Platinum (XPTUSD:CUR) +0.89% to $1,005.10.
Gold (XAUUSD:CUR) +0.14% to $2,325.11.

Agriculture

Corn (C_1:COM) +0.07% to $435.32.
Wheat (W_1:COM) -2.53% to $561.18.
Soybeans (S_1:COM) +0.64% to $1,167.83.

Must read book about investing – check here Commodity Snapshot Commodity Snapshot Commodity SnapshotCommodity Snapshot European natural gas futures reached a two-week high of €31/MWh Commodity Snapshotdue 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.

Related Post