Commodity Roundup: Gold faces monthly decline; government shutdown, U.S. data in focus

Gold prices (XAUUSD:CUR ) ticked up on Friday as the U.S. dollar retreated from a 10-month high, although bullion was set for a second monthly drop driven by expectations that interest rates will stay higher for longer to combat inflation in the world’s largest economy.

Market participants will scan the U.S. personal consumption data due for release later on Friday, as they keep a close watch on the looming U.S. government shutdown, and developments in the Evergrande saga, with markets in top bullion consumer China close for the Golden week holidays.

“Increasing conviction around narrative of “higher for longer rates” is tarnishing the investment appeal of gold in the near term. Favorable rate differentials in the U.S. should keep the USD on a strong footing. Nevertheless, we see strategic buying emerging around $1,850/oz as long-term drivers,” ANZ said in a note.

In the energy market, oil prices were on course for a fourth-straight month of gains, supported by tightening supplies following Saudi Arabia and Russia’s extended voluntary output cuts.

U.S. natural gas prices rose for a fifth consecutive session to finish at their highest since August 9 on Thursday, after the weekly report from the Energy Information Administration came in only slightly bearish compared to forecasts and averages.

Regarding Russia’s product export ban, JPM held that it was still a “domestic squabble.” “The government seems to be hesitant to apply any administrative measures to the Russian producers over the domestic fuel shortages, but acknowledges that ‘work’ with the companies will need to be carried out,” the bank added.

Elsewhere, copper prices rose on its way to a weekly gain against a softer dollar.

In the agricultural market, cocoa futures eased, while wheat and soybeans gained.

Recent Commodity Price Movements

• Energy

  • WTI Crude Oil (CL1:COM) +0.56% to $92.23.
  • Natural Gas (NG1:COM) +0.62% to $2.96.

  Metals

  Agriculture

  • Corn (C_1:COM) +0.23% to $489.64.
  • Wheat (W_1:COM) +1.09% to $585.05.
  • Soybeans (S_1:COM) +0.23% to $1,303.50.

  Commodity ETFs

  Gold ETFs:

  • SPDR Gold Shares ETF (GLD)
  • VanEck Gold Miners ETF (GDX)
  • VanEck Junior Gold Miners ETF (GDXJ)
  • iShares Gold Trust ETF (IAU)
  • Direxion Daily Gold Miners Index Bull 2X Shares ETF (NUGT)
  • Sprott Physical Gold Trust (PHYS)

  Other Metal ETFs:

  • iShares Silver Trust ETF (SLV)
  • Sprott Physical Silver Trust (PSLV)
  • Global X Silver Miners ETF (SIL)
  • U.S. Copper Index Fund, LP ETF (CPER)
  • abrdn Physical Palladium Shares ETF (PALL)

  Oil ETFs:

  • U.S. Oil Fund, LP ETF (USO)
  • Invesco DB Oil Fund ETF (DBO)
  • U.S. 12 Month Oil Fund, LP ETF (USL)
  • U.S. Brent Oil Fund, LP ETF (BNO)
  • U.S. Natural Gas Fund, LP ETF (UNG)
  • U.S. Gasoline Fund, LP ETF (UGA)

  Agriculture ETFs:

  • Invesco DB Agriculture Fund ETF (DBA)
  • Teucrium Soybean ETF (SOYB)
  • Teucrium Wheat ETF (WEAT)
  • Teucrium Corn Fund ETF (CORN)