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gold price (HAUUSD:CURGlobal stocks recovered from Monday’s sharp sell-off on Friday as investors once again reset expectations for a long-awaited interest rate cut from the Federal Reserve, with weekly losses expected on Friday.
Spot gold (XAUUSD:CUR) drops nearly 1% weekly The number of Americans filing new claims for jobless benefits fell on Thursday, easing concerns about an impending economic slowdown. Despite gold bullion’s safe-haven status, Precious metals caught Markets plunged on Monday.
ING analysts said the focus in the gold market remains on the scope and timing of possible interest rate cuts by the Federal Reserve. The brokerage expects gold prices to average US$2,380 in the third quarter, peak at US$2,450 per ounce in the fourth quarter, and average annual prices of US$2,301 per ounce.
Geopolitical tensions in the Middle East and elsewhere have also increased gold’s appeal.
At the same time, oil prices are set to rise more than 3% weekly as supply concerns in the Middle East intensify. In addition, recent U.S. employment data has also eased demand concerns.
Israel remains on edge after the assassinations of leaders of Hamas and Hezbollah, preparing for retaliatory attacks from Iran. However, a phone call between Iranian President Masoud Pezeshkian and French President Emmanuel Macron may have opened a diplomatic path to easing tensions. Analysts at ANZ Bank said the political situation over the closure of Libya’s Sharala oil field also showed no signs of ending.
However, one of the bright spots in the oil market is China’s jet fuel demand. ANZ said, citing government data, that total air traffic increased by 14% in June compared with the same period in 2019, and government data showed that domestic flights grew by nearly 10%.
Brent and WTI are both headed for weekly gains of more than 3% as “a risk-on tone across financial markets helps push commodity markets higher.”
US agribusiness trading giant and exporter Cargill is reportedly streamlining its operations from five units to three to focus on its core expertise as it misses profit targets.
The move comes as trading profits are squeezed, in part because of abundant supplies of the world crop and shrinking cattle numbers in the U.S., putting pressure on beef processors. Bloomberg the report said. Cargill’s rivals Archer Daniels Midland (ADM) and Bunge Global (BG), which together with Louis Dreyfus Co. make up a large portion of the global agricultural trade, have recently reported shrinking profits. The so-called ABCD.
Overview of recent commodity price trends and some ETFs
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vitality
- Crude Oil (CL1:COM) +0.10% to $76.27.
- Natural Gas (NG1:COM) +1.78% to $2.16.
Metal
agriculture
- Corn(C_1:COM) -4.27% to $380.05.
- Wheat(W_1:COM) +1.62% to $546.21.
- Soybeans(S_1:COM) +0.70% to $1,015.02.
Commodity ETFs
Gold ETFs:
- SPDR Gold Stock ETF (NYSE:GLD)
- VanEck Gold Miners ETF (GDX)
- VanEck Junior Gold Miners ETF (GDXJ)
- iShares Gold Trust ETF (IAU)
- Direxion Daily Gold Miners Index Long Market 2X Equity 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 Equity ETF (PALL)
Oil ETFs:
- United States Oil Fund, LP ETF (USO)
- Invesco DB Oil Fund ETF (DBO)
- US 12 Month Oil Fund, LP ETF (USL)
- US Brent Oil Fund, LP ETF (BNO)
- United States 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)
