Weekly Round-Up: Commodities Retreat from Recent Highs

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Gold was flat at $1,323.01 an ounce this morning as a declining dollar and strengthening equities combined to halt its rally.


Gold was flat at $1,323.01 an ounce this morning, according to Reuters, as a declining dollar and strengthening equities combined to halt its rally. Meanwhile, US gold futures for April delivery rose $6.40, hitting $1,323.30.
“Falling U.S. interest rates and a weakening of the dollar, are two very important determinants of gold prices,” Natixis analyst Nic Brown told the news outlet. “Since the beginning of the year, both of these have been helping to push gold higher. But once the situation in the U.S. normalizes, the economy will continue to improve, the fall in the U.S. interest rates will probably reverse and the dollar will improve.”
Reuters also notes that silver fell 0.2 percent, or $0.44, to $21.75 an ounce, feeling the effects of stronger equities and significantly decreased Asian physical demand.
Copper prices are nearly flat on the London Metal Exchange today following losses on Thursday, as per The Wall Street Journal. The metal is trading at $7,145.50 per metric ton, down 0.1 percent, or $7.15. “With less than 1,000 lots of copper traded overnight and very little in the way of data due, it seems we’re in for a quiet end to the week,” Vicky Sanders, head of analytics sales at Marex Spectron, told the publication.
Conversely, copper futures on New York’s COMEX exchange are up 0.2 percent, or $0.075, to $3.2865 a pound, another Wall Street Journal article notes. Investors have found reason for concern in the weakening Chinese yuan, but tightened copper inventories are helping keep prices higher.
Brent crude oil futures for April are down $0.05, at $110.25 a barrel, having retreated from a seven-week high attained Wednesday, states Reuters. The commodity seems set to close at its highest weekly level for the year as African supply disruptions have tightened inventory and stimulated prices.
 
Related reading: 
Gold Breaks Winning Streak, Rebounds on Thursday
Silver Spends Week Above $21, Nearly Hits $22

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