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Precious metal prices ticked up on Tuesday as the dollar index (DXY) eased slightly, with bullion regaining some ground after hitting a three-week low in the previous session, as investors await key U.S. inflation data and FOMC policy decision, that could make or break expectations around rate cuts next year. Spot gold (XAUUSD:CUR) was up +0.24% to $1,986.13 by 6 am ET.
Stuart Allsopp, owner of Icon Economics in a recent post wrote, “gold’s failure to hold above $2,000 despite a surge in bullish sentiment suggests short positions are once again warranted.” “Despite the decline in bond yields, gold remains extremely overvalued and is highly susceptible to any pause in the recent yield decline.”
Base metals also traded higher, as a weaker dollar made greenback-priced metals cheaper to holders of other currencies amid caution ahead of a key U.S. inflation data release. Copper prices were also supported by mine closures and disruptions that have prompted analysts to lower their forecasts for surpluses, Reuters reported. “CPI (consumer price index) numbers and the FOMC (Federal Open Market Committee) might bring some noise later on in the week,” said broker Sucden Financial in a report.
However, in the energy market, oil prices ticked lower after initial gains following an attack by the Iran-aligned Houthis on a chemical tanker, which escalated geopolitical tension in the Middle East. Concerns over excess supply and slowing demand still lingered.
A cruise missile launched from Houthi-controlled Yemen struck a commercial chemical tanker, causing a fire and damage but no casualties in the latest such attack to heighten safety risks for tankers in vital shipping lanes.
The market should get a fresh take on fundamentals when OPEC and the International Energy Agency release their monthly oil market reports this week. The oil market is also watching negotiations at COP28, ANZ analysts noted.
Elsewhere in the agriculture market, soybeans, cocoa and wheat also edged higher.
“Contract-based outflows across the agri complex totalled $10 billion, driven mainly by outflows across oilseeds and softs markets,” JPM Commodities Research said.
“Sugar prices have plummeted by -18% from a recent high seen in early November of 27.95 USd/lb, largely driven by India’s transformative ethanol policy change which mandates mills to immediately stop using cane juice and sugar syrup for ethanol production, while allowing supply of up to 1.3 billion L of B-molasses which were already offered to OMCs.”
Recent Commodity Price Movements
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Energy
Metals
Agriculture
- Corn (C_1:COM) -0.13% to $460.40.
- Wheat (W_1:COM) +0.93% to $596.74.
- Soybeans (S_1:COM) +0.41% to $1,341.50.
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 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)
Oil ETFs:
- 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)
Agriculture ETFs:
- Invesco DB Agriculture Fund ETF (DBA)
- Teucrium Soybean ETF (SOYB)
- Teucrium Wheat ETF (WEAT)
- Teucrium Corn Fund ETF (CORN)
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