Commodity update 82

13 July 2017

Although oil prices had a strong start into last week, there were big losses as well. Also, since mid-June there is a downside trend in gold prices, due to the announcement of the Fed to increase interest rates by 25 basis points.

 

Oil prices fear oversupply

The news for the oil market are still effecting prices. Investors fear about a long-term oversupply. Since a few months the amount of drill holes are increasing and therefore increasing supply. At the same time the OPEC is unsuccessfully trying to fight this development with production cuts.

Gold prices wait for Fed decisions

The correlation between the gold price development and decisions made by the Fed is significant. After the strong US-labor report the Fed stated monetary policy could further normalize. This could affect the oil prices negatively.

Tin near 20,000 mark

At the end of June, the tin price climbed to 25,500 USD per ton but met resistance to hike further. After a short downfall below the support line of 20,000 USD, the metal is traded at around 20,045 per ton.

 

 

Vontobel products are tradable at your bank or online broker.

 

 

This information does not constitute a financial analysis, but product advertisement. Thus it does not meet the legal requirements to ensure the impartiality of financial analysis and is not subject to trade prohibition before the publication of a financial analysis.

For detailed information, particularly regarding the structure and the risks associated with an investment in the derivative financial instruments, prospective investors should read the Base Prospectus, which is available together with the Final Terms and any supplement to the Base Prospectus in electronic form on the issuer’s website: http://certificates.vontobel.com. Additionally, the Base Prospectus, any supplements to the Base Prospectus and the Final Terms are available in printed form, free of charge, at the registered office of the issuer: Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany.

Investors should consider the applicable selling restrictions.

Companies of the Vontobel group may directly or indirectly pay commissions in varying amounts to third parties (e.g. brokers) in connection with the public offer and the distribution of the derivative financial instruments. Further information is available upon request from your distribution partner.

Without permission, this product advertisement may not be reproduced or redistributed.

06/02/2023 00:44:39