Commodities Update 57

Commodities Update 57

18 October 2016

Important legal information

The oil prices started with a solid growth this week. WTI rose about 1.3 percent to USD 51 and Brent rallied about 1 percent to reach the price of USD 52. According to commodity analysts from Commerzbank, the growth was largely driven by speculation which has taken place since September 2016. However, if the announced shortcut in oil production eventually will be cancelled, the scenario may turn around and many long positions in the market could be closed.

Against the background of the current weak US-Dollar, the gold price rose slightly above USD 1,250 per ounce. Hence, the consolidation after a drop from USD 1,340 still continues. As data from the US forward market’s supervision revealed, the fall in prices was caused by an extraordinary high number of 55,000 future contracts sold during 5 trading days. Nevertheless, the low price already attracts investors, since the physical demand have risen this month.

China’s economic data (including the GDP for the 3rd quarter) will be revealed this week which might be significantly relevant for metal prices, e.g. copper. In the case of a positive economic development (suggested by premier Li Keqiang) a boost in metal prices in general is expected. However, the future development remains to be seen.

 

08/12/2022 04:55:12