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Gold prices were little changed in holiday-thinned trading on Wednesday, but were headed for their best yearly performance in three amid expectations of Federal Reserve interest-rate cuts in 2024. Strong physical gold purchases by central banks and geopolitical tensions have helped gold prices defy surging bond yields and a strong dollar. Spot gold (XAUUSD:CUR) was relatively flat at $2,065.31 an ounce by 6 am ET.
Saxo Bank’s technical analyst Kim Cramer Larsson in a recent note said, gold is slowly approaching $2,070 but could make new all-time highs in 2024, and platinum, which is crawling higher towards 1K short-term, could move to $1,150 in first half of 2024.
In the energy market, Brent crude prices ticked lower, but were trading above $80 a barrel as investors monitored the situation in the Red Sea with some major shipping companies resuming passage through the trade route despite continued attacks and broader Middle East tensions.
Brent and WTI closed more than 2% up in the previous session as fresh attacks on ships in the Red Sea prompted fears of wider disruption and delay of oil cargoes, with further price support coming in from hopes of rate cuts that could boost economic growth and fuel demand.
However, as the WTI Crude and Brent come off their best week since Mid-October, the year ahead will scale some heights temporarily, but the biggest headwinds remain the economic outlook, said John Kilduff, Again Capital founding partner told in a CNBC interview.
Inventory reports from the American Petroleum Institute and the Energy Information Administration are expected on Wednesday and Thursday respectively, a day later than normal for both reports because of the Christmas holiday.
Natural gas prices meanwhile gained after two consecutive session of declines. U.S. sanctions targeting Russia’s massive Arctic LNG 2 project are unacceptable and undermine global energy security, the Russian foreign ministry’s spokeswoman said on Wednesday, Reuters reported.
Elsewhere most base metals ticked up after data showed manufacturing activity in top consumer China improved last month, while a weak U.S. dollar also lent support.
Andrew Hecht, a 35-year Wall Street veteran covering commodities and precious metals weighs in on the outlook for zinc, copper and aluminium 2024.
Among agricultural commodities, soybean and wheat traded in red, while cocoa prices moved up.
Recent Commodity Price Movements
-
Energy
Metals
Agriculture
- Corn (C_1:COM) -0.20% to $479.29.
- Wheat (W_1:COM) -1.08% to $629.36.
- Soybeans (S_1:COM) -0.27% to $1,309.75.
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)
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