Commodity Snapshot
Spot silver (XAGUSD:CUR) gained over 1% on Friday, reaching its highest since early December. This week, it has gained over 3%, marking a third consecutive week of gains. Silver is still far from reaching a record high, as it would require a price double from its current level. Commerzbank analyst Carsten Fritsch suggests significant upside potential for silver.
The Bank has increased its year-end forecast to $29 and confirmed its platinum and palladium forecasts at $1,100 per troy ounce, as both prices have not fully benefited from the rise in gold and silver prices.
Gold prices are set to end a three-week upward streak due to US economic data showing persistent inflation, causing investors to reduce expectations for Fed rate cuts this year. Spot gold was up by 0.45% to $2,170.74 an ounce.
The PPI data was based on February’s higher U.S. consumer price index, suggesting that while gold is a hedge against inflation, higher interest rates increase the opportunity cost of holding bullion.
Oil prices were lower but expected to gain in the coming weeks due to market assessments of the Red Sea situation and demand forecasts from the IEA and OPEC. Brent reached a four-month high on Thursday, reaching $85 for the first time since early November.
However, a US Energy Information Administration report contains a forecast correction that could slightly dampen the medium-term price outlook. Chinese crude oil processing figures could also cause price movements in the coming week. J.P. Morgan Commodities Research reports that Russia’s pledge to cut production to 9.0 mbd by June is a focus, but brokerages are less convinced about further export reductions.
Cocoa prices have risen by over 1%, marking the best week in a month, and have risen nearly 80% since the start of the year. Some cocoa plants in Ivory Coast and Ghana have stopped or cut processing due to unaffordable beans.
Stocks to watch: Futurefuel (FF) +21%, American Battery Technology (ABAT) +15%, Critical Metals (CRML) +12%, Loop Industries (LOOP) +5%, VAALCO Energy (EGY) +20%, ProFrac Holding Corp (ACDC) +6%.
Recent Commodity Price Movements
Energy
Crude oil (CL1:COM) -0.66% to $80.72.
Natural Gas (NG1:COM) +1.16% to $1.76.
Metals
Palladium (XPDUSD:CUR) +2.43% to $1,095.32.
Platinum (XPTUSD:CUR) +0.93% to $936.09.
Copper (HG1:COM) +0.92% to $4.07.
Agriculture
Corn (C_1:COM) -0.22% to $432.81.
Wheat (W_1:COM) +0.31% to $533.91.
Cotton (CT1:COM) +0.27% to $93.73.
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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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