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.



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06/02/2023 00:44:39