Tags: Commodity News
Commodities: Oil, Gold and Silver News

Commodities started the day positively on Monday

Commodities continued the positive trade from the previous session on Monday. 

Copper has been the highlight of the day. The metal’s prices hit the highest in more than nine years. Let’s have a look at the primary commodities and how they are behaving in today’s market.

Crude oil is trading around $60 a barrel

WTI crude oil has gained 1.2% and is trading at $59.96 a barrel. Recovery in the black gold prices resulted from the restoration of the lost oil production in Texas. 

Moreover, the resume of refinery operations will recover oil demand. Analysts expect crude oil prices to trade sideways to up for the day.

Gold prices recovered over the weaker dollar

At the end of last week, gold prices cut some of the weekly losses and ended higher. Meanwhile, base metals kept increasing on a substantial demand outlook. Rally in base metals prices boosted silver prices on Monday. 

Gold increased 0.3% $1,790.36 an ounce. Pandemic worries and a weaker dollar supported the bullion. Gold prices succeeded in holding support at $1,760 per ounce. Analysts expect bullion prices to trade sideways to up for the day.

MCX Silver March futures rebounded sharply. The white metal price held the support of the rising trend line and 50 day EMA. 

Adrian Zuercher, the head of global asset allocation at UBS Wealth Management, said that the environment is still full of risk. 

Everybody is anticipating more fiscal stimulus. It is not surprising commodity prices have increased, nominal yields are trending higher. Also, equities are trading high.

Rising US bond yields could slow the stock market rally

The bond selloff continued on Monday. Treasury yields increased, and sovereign debt in Australia and New Zealand dropped. Concerns about faster inflation hindered market optimism caused by the positive vaccine news. Ten-year Treasury yields increased the highest level in about a year. It hit a 12-month high of 1.38%, bringing the year-to-date gain to 46 basis points. Bond yields of longer duration seem to follow inflation expectations higher.

Asian stock market dropped lower. A surge in metals prices switched a focus on risks to the economic recovery. 

After the US index slip on Friday, S&P 500 and European equity futures decreased.

This week, US lawmakers are forecast to make progress on a $1.9 trillion stimulus bill. In March, President Joe Biden’s administration may uncover a multi-trillion-dollar recovery package focused on infrastructure. 

Sending
User Review
0 (0 votes)

RELATED POSTS

Leave a Reply

Subscribe to Our Newsletters

Have The Best Of Trade Market News Delivered Directly To Your
Mailbox. Subscribe To Receive The Latest Market News.