The ongoing trade turmoil and its implications for global growth is helping to boost precious metals. The energy sector is struggling however, while agricultural commodities have taken a hit following the latest USDA WASDE report.   Precious metals Speculative investors boosted net long GOLD positions to the highest since September 2016, according to the latest data as at August 6 from CFTC. Gold soared the most in seven weeks last week amid falling global yields, global recession fears and potential currency turmoil. The metal was given an additional lift after Trump said Friday the proposed US-China trade negotiations scheduled for next month could be canceled. Exchange-traded funds (ETFs) had increased their physical holdings of gold for a 10th straight day, Bloomberg reported yesterday. Gold has extended the gains… [Read More...]

Oil prices rose on Friday, supported by expectations of more OPEC production cuts despite the International Energy Agency (IEA) reporting demand growth at its lowest level since the financial crisis of 2008. Brent crude futures LCOc1 were up 89 cents at $58.27 a barrel by 1057 GMT. West Texas Intermediate (WTI) CLc1 futures were at $53.33 per barrel, up 79 cents. “Despite a further cut in oil demand growth by the IEA, oil prices are trading marginally higher, as the demand growth cut was already announced previously by the head of the IEA and the agency still expects larger inventory draws for 2H19,” UBS analyst Giovanni Staunovo said. The IEA said global oil demand in the first half of 2019 grew at its slowest pace since 2008 hurt by mounting signs of … [Read More...]

Oil jumped more than $1 per barrel on Thursday on expectations that falling prices could lead to production cuts, coupled with a steadying of the yuan currency after a week of turmoil spurred by an escalation in U.S.-China trade tensions. Brent crude was up $1.35, or 2.4%, at $57.58 a barrel by 11:07 a.m. (1507 GMT), after hitting a session high of $58.01. U.S. West Texas Intermediate (WTI) crude futures rose $1.69, or 3.3% to $52.78 a barrel after hitting a peak of $52.91. Prices rebounded after tumbling nearly 5% to their lowest since January on Wednesday after data showed an unexpected build in U.S. crude stockpiles after nearly two months of decline. China’s yuan strengthened against the dollar and its exports unexpectedly … [Read More...]

Oil futures traded mixed early Monday as crude investors weighed the health of the global economy and its impact on energy uptake. The planned resumption of trade talks between the U.S. and China, the world’s largest economies, also was in focus but commodity investors appeared doubtful that a near-term resolution could be achieved, which would if achieved help support energy demand and higher crude prices. West Texas Intermediate crude for September delivery CLU19, +0.12% on the New York Mercantile Exchange added 4 cents, or about 0.1%, at $56.22 a barrel, while October Brent crude BRNV19, -0.19%, the global benchmark, gave up 13 cents, or 0.2%, to $63.24 a barrel on the ICE Europe exchange. Last week, U.S. benchmark WTI posted a 1.5% rise for the … [Read More...]