Commodities Update 37

Commodities Update 37

14 April 2016

Important legal information

The oil markets rise. Previous week was shaped by increasing oil prices, which climbed by more than 6 percent. In the new week WTI lost 0.3 percent and notes on USD 39.40, while Brent notes constantly on USD 41.70. The reason for the increasing oil prices could be unexpected news about shrunken US-Inventories. Furthermore on April 17th OPEC as well as Non-OPEC members will meet to discuss oil productions. The course of this conference cannot be predicted and stokes fears but also hopes for positive decisions in the oil politic.

The gold price started the week with a plus of 1.2 percent in comparison to the previous week. The precious metal notes at USD 1,250 and increased by more than USD 40 since April. Recently the World Gold Councils published a report, which states that the current interest rate politic promotes negative income returns investing in government bonds. In addition to that economical threats as well as the ongoing Greece financial crisis support persistent insecurities, according to Ole Hansen, Saxo Bank’s analyst. He also states that a weak US-Dollar, the risk of increasing volatility at stock markets and negative interest rates could awake investors’ interests.

Stabilized equity markets in China as well as a positive economy data spur the metal prices. Chinese production prices fell by 4.3 percent but remained below initial forecasts. But according to the London Metal Exchange Index (LMEX) metal prices decreased generally by about 2 percent. The highest loss had to be noted by copper and zinc, which lost 3 percent each. Zinc notes on USD 1,750, copper fell on USD 4,630. However, because of an increasing demand in China the copper price is expected to rise, relating to information published by Reuters. The prospective development has to be bided.



04/10/2022 06:21:10