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HomeLatest NewsGlobal NewsCommodity Snapshot: Oil Prices Set for Fall as Gold Pulls Back from...

Commodity Snapshot: Oil Prices Set for Fall as Gold Pulls Back from Peaks

Commodity Snapshot

Spot gold prices retreated from a record high, but are set for a weekly gain due to the U.S. Federal Reserve’s reaffirmation of interest rate cuts from June. Oil prices also fell, with a weekly loss. The world’s largest SPDR Gold Shares ETF rose for a fourth day, with factors like geopolitical risks and central bank buying underpinning the gains.

Metals and energy commodities were trading in red against a stronger dollar, as a strong greenback makes commodities expensive for other currency holders. Reports of a U.N. draft resolution calling for a ceasefire in Gaza and a possible slowdown in U.S. gasoline demand weighed on crude oil prices, with both contracts set to end the week lower.

Commerzbank Research predicts commodities will move sideways during Holy Week due to lack of optimism indicators. Gold market rally may end. Oil prices have hit multi-month highs, fueling market fears due to strong demand forecasts and declining inventories.

Commerzbank predicts that a US Secretary of State’s call for a ceasefire in Gaza could lead to price drops due to the risk premium being priced out. The OPEC+ Joint Ministerial Committee meeting on April 3 is of limited importance as production plans have been finalized until the end of the second quarter, and no action is needed due to recent price increases.

Potentially relevant stocks: Yield10 Bioscience (YTEN) +79%, Lithium Americas Corp (NewCo) (LAC) +7%, Platinum Group Metals Ltd. (PLG) +6%, Austin Gold (AUST) -17%, Danimer Scientific (DNMR) -10%, Critical Metals (CRML) -7%, Euronav NV (EURN) +9%, enCore Energy (EU) +7%.

Recent Commodity Price Movements
Energy

Crude oil (CL1:COM) -0.67% to $2,166.28.

Natural Gas (NG1:COM) -0.21% to $1.68.

Metals

Palladium (XPDUSD:CUR) -0.52% to $1,005.13.

Platinum (XPTUSD:CUR) -0.40% to $904.36.

Gold (XAUUSD:CUR) -0.66% to $2,166.45.

Copper (HG1:COM) -0.83% to $4.01.


Agriculture

Corn (C_1:COM) -0.60% to $438.11.

Wheat (W_1:COM) -0.82% to $542.25.

Cotton (CT1:COM) -0.34% to $91.90.

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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. Commodity Snapshot Commodity Snapshot Commodity Snapshot

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.

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