Gold prices (XAUUSD:CUR) witnessed a downfall on Monday. Benchmark 10-year Treasury yields soared, diminishing the appeal of zero-interest-bearing gold for investors. Concurrently, investors keenly anticipated the minutes from the latest Fed meeting. By 6 am ET, spot gold slipped -0.21% to reach $1,975.76 an ounce. All eyes were also on the U.S. leading economic indicators, scheduled for release later in the day.
Switching gears to the energy market, oil prices saw a slight uptick, with Brent (CO1:COM) advancing more than 1% on the prospect of OPEC+ implementing deeper supply cuts to bolster prices. This move comes in the wake of concerns about declining demand, which had caused oil prices to plummet by almost 20% since late September. Furthermore, the prompt inter-month spreads for Brent and WTI descended into contango last week, a signal of abundant supply.
In a note, JPM Commodities Research emphasized, “global oil demand growth will likely decelerate to 1 mbd as the last phase of the post-pandemic rebound dissipates and advancing energy efficiencies and an expanding electric vehicle fleet gain ground.”
The note also highlighted, “We expect Saudi Arabia and Russia to extend their voluntary production/export cuts through 1Q24. Our view on demand in 2024 suggests that as long as the broader OPEC+ maintains the 2 mbd cut in quotas agreed in November 2022 and the extra 1.7 mbd of curbs from some members pledged in April 2023, Saudi and Russia will be able to unwind some of their 1.3 mbd voluntary reductions starting in April 2024.”
Shifting focus to base metals, copper prices remained steady owing to a weakened dollar and hopes for support to the country’s troubled property sector. On the other hand, “Iron ore recorded its fourth consecutive weekly gain amid optimism that support measures from Beijing will boost demand. Major Chinese producers increased crude steel output in early November by 2.4% over late October, according to China Iron & Steel Association data. However, there are still signs of broad weakness in the market. Official data from NBS showed October steel output was down 9% y/y,” ANZ reported.
In the realm of agriculture commodities, soybean and coca registered an upward trajectory, while wheat futures experienced a slight dip. According to the most recent USDA Livestock, Dairy, and Poultry Outlook report, fourth-quarter pork production is lowered to about 7.1 billion pounds, based on assumptions of continued year-over-year lower average dressed weights.
Recent Commodity Price Movements
- Corn (C_1:COM) +0.46% to $469.17.
- Wheat (W_1:COM) -0.13% to $550.03.
- Soybeans (S_1:COM) +0.41% to $1,345.75.
- SPDR Gold Shares ETF (GLD)
- VanEck Gold Miners ETF (GDX)
- VanEck Junior Gold Miners ETF (GDXJ)
- iShares Gold Trust ETF (IAU)
- Direxion Daily Gold Miners Index Bull 2X Shares 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 Shares ETF (PALL)
- U.S. Oil Fund, LP ETF (USO)
- Invesco DB Oil Fund ETF (DBO)
- U.S. 12 Month Oil Fund, LP ETF (USL)
- U.S. Brent Oil Fund, LP ETF (BNO)
- U.S. Natural Gas Fund, LP ETF (UNG)
- U.S. Gasoline Fund, LP ETF (UGA)
- Invesco DB Agriculture Fund ETF (DBA)
- Teucrium Soybean ETF (SOYB)
- Teucrium Wheat ETF (WEAT)
- Teucrium Corn Fund ETF (CORN)