Major Commodities on Global Market
Gold had the longest gain since June 2016 as Federal Reserve increased the interest rate. Analysts at Commerzbank AG, including Eugen Weinberg, wrote in a note, “The expectation of sweeping tax cuts and extensive infrastructural measures from the Trump administration, which would drive up inflation and result in bigger Fed rate hikes, appears to be dwindling. Trump has so far failed to follow up on any of his grand announcements.” Futures for April settlement gained 0.3% to settle at US$1,249.70.
Crude oil has decreased for 3 weeks. Oil reached the lowest since November, reaching below US$48 a barrel. Futures dropped 1.7% this week in New York. Rob Thummel, a managing director and portfolio manager at Tortoise Capital Advisors LLC said, “Breaking through US$50 was bearish psychologically. The probability of OPEC extending the cuts is even higher with prices in the US$40s.” West Texas Intermediate for May settlement increased 27 cents to US$47.97 a barrel on the New York Mercantile Exchange. Brent for May delivery rose 24 cents to US$50.80 a barrel on the London-based ICE Futures Europe exchange. Prices fell to US$50.56 on Thursday.