Gold prices were set for a third week of gains on Friday as easing inflation boosted optimism over a rate cut by the Federal Reserve, while Brent Crude prices (CO1:COM) rose above $86 a barrel, even though it was set for a weekly drop.
Spot gold (XAUUSD:CUR), down -0.5% to $2,404.39 an ounce, by 6 am ET, was set for a 0.8% weekly rise. The non-yielding metal rallied above $2,400/oz yesterday, having climbed about 18% in the past six months.
ING analysts believe gold is poised to keep its positive momentum going into the second half amid the current global geopolitical and macroeconomic landscape, while central bank demand is expected to grow.
The U.S. presidential election in November and the long-awaited Fed rate cut will also continue to add to gold’s upward momentum through to the end of the year, in the brokerage’s view.
On the energy side, Brent futures were set for a more than 1.5% weekly fall, while WTI futures (CL1:COM) were also down marginally. Brokerage ING said it continues to hold on to its view that ICE Brent will average $88/bbl in the current quarter.
“There are of course risks to this view and these risks are largely centered around demand, it said, adding, Chinese demand has been a concern in the market for some time, and the latest trade data from China is unlikely to help ease these concerns.
China’s June crude oil imports averaged 11.35m b/d down 10.4% year-on-year. This also leaves cumulative imports so far this year down 1.6% year-on-year.
Turning to agriculture commodities, investors will closely watch the World Agricultural Supply and Demand Estimates (WASDE) report at 11 a.m. CDT on Friday.
Recent Commodity Price Movements and A look At Some ETFs
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Energy
- Crude oil (CL1:COM) +1.08% to $83.51.
- Natural Gas (NG1:COM) +0.13% to $2.27.
Metals
Agriculture
- Corn (C_1:COM) -3.39% to $396.83.
- Wheat (W_1:COM) -1.01% to $565.45.
- Soybeans (S_1:COM) -0.54% to $1,110.81.
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)