Commodity supercycle gathers momentum – What’s next for prices [Video]
Commodity prices are booming across the board with everything from metals, energy to agriculture markets, trading near multi-year highs. Last week, Palladium, Iron Ore, and Lumber prices took center-stage skyrocketing to all-time record highs. Meanwhile, Copper and Aluminium prices hit 10-year highs. Both metals have now doubled from the lows seen a year ago. Read more...
Gold demand trend Q1 2021
According to a report from the World Gold Council (WGC), gold demand for Q1 2021 (excluding OTC) amounted to 815.7t, almost equivalent to Q4 2020, only down 23% compared to Q1 2020. Meanwhile, the average gold price in the first quarter was 13% higher y/y, but it fell 4% q/q. The low price relative to last year’s high has increased consumer demand as activity after the economic opening and the ongoing recovery lifted sentiment.
Jewellery demand was 477.4t, up 52% y/y. The value of jewellery spending – US $27.5 billion – was the highest for the first quarter since Q1 2013. Investment in bars and coins of 339.5t (+ 36% y/y) was supported by bargain-hunting, as well as expectations of building inflationary pressure. Consumer demand growth was offset by strong outflows from the gold-backed ETF (gold ETF), which lost 177.9 in Q1 as higher interest rates and the downward trend in prices weighed on investor sentiment. Read more...
Gold Price Analysis: XAU/USD climbs to fresh session tops, around $1,780 region
Gold built on its steady intraday ascent and climbed to fresh daily tops, around the $1,780 region during the early European session.
The precious metal caught some fresh bids on the first day of a new trading week and recovered further from two-week lows, around the $1,756 region touched last Thursday. This marked the first day of a positive move in the previous three trading sessions and was supported by a combination of factors. Read more...
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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