Precious metals continued to fall in value on May 27, with gold prices sliding down for the eight day in a row. Together with silver they were down by about 0.60%, as the decline was fuelled by continuous Fed expectations and their first rate increase since December 2015.
The only extremes in terms of daily price movements on Thursday of this week were posted by corn and natural gas, as the former rallied 0.86% and the latter plunged 1.38%.
Among all major commodities, only gold continued to fall down on Wednesday and slumped 0.23%, given expectations that the Federal Reserve will raise the main target interest rate in June or July and will push down demand for the save haven metal.
Commodities had a mixed trading session yesterday, with most of energy components rebounding and precious metals continuing to lose value.
Corn was the only commodity included in this review to add value on Monday, May 24. While growing 0.82%, it curbed the overall daily drop of the benchmark S&P GSCI Index and narrowed it to 0.66%.
Gold and oil futures dipped on Friday of the previous week; however, trading session used to be quiet and changes turned to be narrow.
In the aftermath of the release of US gas storage report, futures for this energy component jumped by 1.9%. Natural gas was the only commodity to gain value, while silver and corn in turn depreciated the most.
Oil markets were shocked by increasing US inventories, after the data from the Energy Information Administration was released on Wednesday.
Commodity markets were more or less stable on Tuesday, as all components posted gradual growth with no extreme deviations from the norm.
Oil supply disruptions in Canada and Nigeria are raising the likelihood of an easing supply glut. It continues to provide bullish impetus to the futures, as Crude added 3.27% and Brent hiked 2.38% yesterday.
Precious metals were bid on Friday of the previous week, despite some Dollar's strength in the wake of optimistic statistical releases from the world's largest economy over the trading session. However, the market was predominantly driven by energy components.
With the US currency remaining strongly bid over Thursday, precious metals were unable to find a reasonable ground for a rally. Silver and gold were the worst daily performers, as they plummeted by 2.5% and 1%, respectively.
Supply disruptions in Canada and Nigeria continued to put upside pressure on energy prices over Wednesday. Oil futures were the best performers, as they spiked by 3.5-4.5% and posted growth for a second day in a row.
Contrary to Monday, yesterday all commodities included in our daily review posted distinctly positive changes.
Commodities were down across the spectrum on Monday, compared with Friday's rally amid Greenback's weakness. However, on May 9 the US currency rebounded substantially, as financial markets began speculating again about the upcoming meeting of the Federal Reserve in June.
While slightly softer US currency might have had little influence on other FX market components, it definitely provided a positive momentum to the majority of commodities.
Oil contracts were popular among investors on Thursday, as possible temporary production disruption in Canada and Libya raised prices these energy futures by about one percentage point.
Natural gas continued to greatly diverge from its counterparts in the commodity market. It posted a daily surge of 2.64% on May 4, while all others used to hover in a much less turbulent environment.
Natural gas, by being the most volatile commodity in our review, revived 2.15% on Tuesday after steep downward changes of more than 6% a day before.
Despite much weakened US currency, all major commodities have posted a significant retreat in prices over Monday, the second day of May. Natural gas was down the most by more than 6%, with contracts for delivery in June losing attractiveness in the wake of warmer US weather forecasts.
Precious metals and natural gas were all bid on the last trading day of April, as the rally was prompted by dampened US currency in the wake of disappointing fundamentals and generally risk-off market sentiment.
Inaction of US and Japanese central banks weighed on the Greenback yesterday, while the sell-off is continuing to take place at the moment.
Provided with somewhat weaker US Dollar and notwithstanding an advance in US oil inventories to the highest level ever, oil futures added around 3% on Wednesday.
Energy prices diverged on Tuesday, with oil adding about 3% on a daily basis and natural gas leading the loss side of the equation with a slide of 1.5%.