Major Commodities on Global Market

Gold future has gained in 2017, as investors believe that under Donald Trump presidential period, US economy will suffer. David Govett, an analyst at Marex Spectron Group Ltd. In London, stated, “As the inauguration of Trump draws close, I think people are realising that potentially this could be a very stormy presidency and gold may well benefit from that. There is new money at the beginning of each year looking for a home and a lot of this seems to find its way into gold.” Gold for immediate delivery rose 0.9% to US$1,214.09 an ounce in New York. Gold futures for February settlement gained 1.4% to settle at US$1,212.90.

Oil price has increased, as US crude supplies dropped last week. Supplies declined 5.04mn barrels, according to the American Petroleum Institute. The Organization of Petroleum Exporting Countries and other 11 countries agreed last year to reduce supply. Adam Wise, who helps run a US$7bn oil and natural gas bond and private equity portfolio at John Hancock in Boston, said, “At current prices you are seeing an increase in the rig count, which will increase U.S production. We are going to see headline-driven movement from day-to-day, but the long term trend remains higher.” West Texas Intermediate for February delivery dropped US$1.40 to settle at US$51.08 a barrel on the New York Mercantile Exchange. Brent for March settlement lost US$1.55 or 2.8% and settled at US$53.92 a barrel on the London-based ICE Futures Europe exchange.