Brent futures rose 2.4% last week, while US West Texas Intermediate advanced 4.6%. The limits of 2 million barrels per day it will remain until the end of June, and Saudi Arabia will cover half of the promised production cuts.
On the metals side, gold, silver, platinum and palladium are trading in the green, with bullion supported by expectations of a rate cut in June following last week’s economic data. The next major US economic release will be the February jobs report, due on Friday. Lower interest rates tend to increase the attractiveness of unprofitable bullion. Spot gold (XAUUSD:CUR) was little changed at $2,084.05 per ounce by 6 a.m. ET.
“A bullish push towards the previous all-time high at around $2,134 is on the cards. However, in the medium term gold could push higher,” said Ole Hansen of Saxo Bank, adding that, on the weekly chart, gold it retraced just above the 0.618 retracement at $2,077. If we exclude the historical peak of December 2023, there could be a potential for the projection of $1,382 to $2,191.
Among base metals, prices of most came under pressure after data showed China’s industrial production shrank for a fifth straight month, suggesting weak demand. “This was not helped by aluminum inventories rising to their highest level since May 2023. Nickel prices fell amid further warnings of a chronically oversupplied market,” ANZ reported.
“An Indonesian government official said prices are unlikely to rise above $18,000/t because the country will ensure the market remains well-supplied to keep costs low for electric vehicle makers. Indonesia is implementing plans to alleviate concerns about ESG compliance as it seeks deals with the US electric vehicle sector which is off-limits to the Chinese,” the statement added.
Elsewhere, among agricultural commodities, soybean and cocoa prices rose, while wheat fell. The latest CFTC data shows money managers increased their net bearish bets on CBOT soybeans by 23,976 lots for the 15th consecutive week to 160,653 lots as of February 27, the most bearish betting price since May 2019, ING reported.
“Meanwhile, speculators continue to reduce their bullish bets on cocoa, even as prices rise due to market expectations for a supply shortfall this year.” Money managers reduced their net bullish bets on ICE Cocoa by 10,445 lots for the fifth consecutive week to 32,328 lots (the least bullish since March 2023) in the latest reporting week following the decline in gross shorts by 12,846 lots, it adds the report.
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Power
- Crude Oil (CL1:COM) -0.23% at $79.78.
- Natural gas (NG1:COM) +4.63% at $1.92.
Metals
agriculture
Commodity ETFs
Gold ETFs:
- 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 metals ETFs:
- iShares Silver Trust ETF (SLV)
- Sprott Physical Silver Trust (PSLV)
- Global X Silver Miners ETF (SIL)
- US Copper Index Fund, LP ETF (CPER)
- abrdn Physical Palladium Shares ETF (PALL)
Oil ETFs:
- US Oil Fund, LP ETF (USO)
- Invesco DB Oil Fund ETF (DBO)
- US 12-Month Oil Fund, ETF LP (USL)
- US Brent Oil Fund, LP ETF (BNO)
- US Natural Gas Fund, LP ETF (UNG)
- US Gasoline Fund, LP ETF (UGA)
Agricultural ETFs:
- Invesco DB Agriculture Fund ETF (DBA)
- Teucrium Soy ETF (SOYB)
- Teucrium Wheat ETF (WEAT)
- ETF Teucrium Corn Fund (CORN)