Commodity Weekly Wrap: Copper to gold, metals crash amid worries over demand outlook; crude oil rebounds
London copper prices eased their way to 5th straight weekly dip, as the red metal is down nearly 1% so far this week, 8.5% on a monthly basis, and is hovering at its 6-month lows as USD gathered momentum as markets price in more interest rate hikes this year.
Prices of precious metals like gold, silver, zinc and copper plunged deeply between May 15 and May 19, and the yellow metal shed $120 from a record high this month. Global Gold touched a record high of $2082 earlier this month. Not only the metals, the global agri commodities witnessed sharp declines this week, however, the crude oil prices have rebounded.
Prices of metal continue to fall
As the gold prices fell sharply below key levels this week, Biden administration expressed optimism that a deal to lift the U.S. debt ceiling could be reached this week. On the other hand, the downgrade in the price of silver continued for the fifth week in a row. The price of silver was down by 2 per cent so far this week; hovering near 7-week lows.
London copper prices eased their way to 5th straight weekly dip, as the red metal is down nearly 1 per cent so far this week, 8.5% on a monthly basis, and is hovering at its 6-month lows as USD gathered momentum as markets price in more interest rate hikes this year.
The price fall is evident for metals like zinc and nickel as well. Both metals are down 4 per cent so far this week as the price of zinc is hovering at 31 months, and nickel at 8 months low. As per the estimates of the analysts, refined zinc prices are expected to be on a downward trend until 2025.
Global Agri Commodities Witness Sharp Declines
Barring coffee and cotton, all agri commodities are headed for a second weekly decline this time, primarily driven by falling demand for U.S. supplies and higher output forecast by the United States Department of Agriculture (USDA). While on one hand, the price of soybean hit 19 months low, soy oil was at 27 months low. Global wheat and raw sugar futures hover at 2-week lows.
Crude oil prices rebound
The crude oil prices headed for their first weekly gain in five weeks as investors turn optimistic over fading risk of US debt default. Brent and WTI crude prices are up by 3%, so far this week as U.S. oil inventories jumped unexpectedly last week by 5 million barrels.
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