Commodity Roundup: Gold eases as steady dollar dampens appeal, oil prices mixed

Precious metals fell on Tuesday, with gold trading around $2,315.12 an ounce, as a stable US dollar made bullion less expensive for foreign buyers, while investors awaited more clues on when the Federal Reserve will deliver its first interest rate cut.

After the US central bank signaled last week that it was leaning toward eventual cuts in borrowing costs, but wanted to gain “greater confidence” that price pressure would continue to decline before cutting interest rates, policymakers repeated that message on Monday.

Richmond Fed President Thomas Barkin said the current interest rate level should cool the economy enough to bring inflation back to the central bank's 2% target.

Meanwhile, New York Fed President John Williams said that while interest rates will be lowered, monetary policy is currently in a very good position, and he is looking at “aggregate data” to decide how to approach interest rates.

The US Dollar Index (DXY) rose 0.1% against its rivals, making gold priced in the US currency more expensive for buyers holders of other currencies.

Among agricultural commodities, the latest data from the International Coffee Organization shows that global coffee exports rose to 13 million bags in March, up 8.1% year-on-year, ING said. This includes Arabica exports at 7.4 million bags (up 9.7% year-on-year) and Robusta exports at 5.6 million bags (up 6% year-on-year). Cumulative exports for the period from October 2023 to March 2024 rose 10.4% year-on-year to 69.2 million bags. Coffee futures (KC1:COM) were traded. -1.34% lower at $195.05.

Money managers reduced their net shortfall in wheat on the CME by 28,318 contracts to 47,866 contracts as of April 30, the smallest bearish stance since the week ending August 1, 2023, CFTC data show.

Elsewhere, oil prices were mixed with Brent crude trading in the green, while West Texas Intermediate crude fell slightly, after Israel struck Rafah in Gaza and ceasefire talks remained at stake.

Potentially related stocks: Idaho Strategic Resources (IDR), Dakota Gold (DC), Hycroft Mining Holdings (HYMC), Endeavor Silver (EXK), Origin Materials (ORGN), Braskem SA ADR (BAK), Alpha Metallurgical Resources (AMR), Nature Wood Group (NWGL).

Recent commodity price movements and a look at some ETFs