Wed. Oct 27th, 2021

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Gold, silver and oil have a weak price action

The highlight:

  • ENERGY:
    Brent crude futures gained 1.29%, or 93 cents, while WTI crude futures rose 1.27%, or 86 cents. It’s still a poor week for oil prices.
    Natural gas futures was set Thursday at $ 4,140, ​​losing 1.8 cents.
  • METALS:
    Spot gold fell 0.3% to $ 1,799.20 an ounce.
    The future of silver is currently trading at $ 25,200.
    Copper rose 0.8% to $ 9,566 a tonne.
  • AGRICULTURAL:
    Corn futures added 1 cent $ 5.54 per bushel in a volatile session.
    Soy futures advanced 5 cents to $ 13.33-1 / 2 per box.

Oil had its worst week since March despite increases

Crude oil prices rose on Friday, but were still well on track to close the week with the biggest drop since March.

Brent crude futures gained 1.29%, or 93 cents, to $ 72.21 a barrel, and WTI crude futures rose 1.27%, or 86 cents, to $ 69.97 the barrel. Still, both contracts have lost 6% this week.

According to Howie Lee, an economist at OCBC Bank in Singapore, the Delta variant is making an impact now and many markets are experiencing risk aversion, not just oil.

Japan is preparing to extend emergency restrictions to more areas. Meanwhile, China, the world’s second-largest oil consumer, imposed restrictions on some cities and canceled flights. This could affect oil demand as the end of the summer travel season approaches.

However, oil prices were supported by growing tensions between Israel and Iran.

 

Natural gas leaked due to weather forecasts

Natural gas markets fell on Thursday at the start of the session, but then recovered and showed signs of strength.

The U.S. Energy Information Administration reported that the country’s natural gas inventories grew by 13 billion cubic feet during the week ending July 30, contrary to market expectations of a rise of 21 Bcf.

Government storage data supported gas prices. However, the sentiment changed when weather models showed that the heat that came was a little less intense.

The Nymex gas futures contract for the September delivery was settled Thursday at $ 4,140, ​​losing 1.8 cents. October futures fell 1.5 cents to $ 4,148.

Spot gas prices remained mainly in positive territory. However, some locations, mainly in the West, fell in red. NGI’s national spot gas average fell 2.5 cents to $ 4,145.

Investors continue to attach great importance to the heat reaching the western part of the United States. This should increase the demand for natural gas.

Corn prices are volatile ahead of the USDA report

Corn experienced a traded session on CBOT as the market awaits updated USDA demand and supply estimates next week. Corn contracts for the December delivery were last negotiated with a 1-cent increase to $ 5.54 per bushel.

Dry weather increases soybeans

Dry conditions in the midwestern United States have supported soybeans. In addition, there have been signs of increased demand. According to the USDA, private exporters reported a sale of 131,000 tons of soybeans in China. Still, the rain forecast over the weekend and early next week limited gains.

Soybean futures contracts for the November delivery advanced 5 cents to $ 13.33-1 / 2 per bushel.

Gold fell 13% compared to last year

Spot gold fell 0.3%, to $ 1,799.20 an ounce at 0844 GMT, and was up for the worst week since mid-June. U.S. gold futures fell 0.4% to $ 1,801.10.

The price of gold has fallen 13% from its all-time high a year ago. Analysts attribute a decline in falling consumption in China and the prospect of rising interest rates.

The metal hit a record price of $ 2,075 per ounce on August 7, 2020, fueled by investors ’doubts about the economic recovery.

Central banks are already considering an increase in interest rates that has made gold less attractive this year.

As for price forecasts, some analysts believe that gold will again reach $ 2,000 an ounce in the medium term, as the jewelry sector expects growing demand in 2021.

Sriram Iyer, a senior research analyst at Reliance Securities, said the fallacious comments from U.S. Fed officials have affected g. The number of Americans filing new claims for unemployment benefits fell further last week. At the same time, layoffs dropped to their lowest level in just over 21 years.

The post Gold, Silver and Oil have a weak price action that first appeared on FinanceBrokerage.

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