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Gold prices (XAUUSD:CUR) eased on Tuesday as the U.S. dollar held firm, with focus turning to the jobs’ data, while oil extended declines after hitting a four-month low, as investors continue to weigh the OPEC+ output decision.
Bullion gained on Monday as data showed that U.S. manufacturing activity slowed for a second consecutive month in May, while construction spending unexpectedly fell, increasing speculations that the Fed has room to cut rates this year.
The next Fed meeting runs from Tuesday to Wednesday of next week, and updated economic and rates projections will of interest to traders and investors.
Meanwhile, the European Central Bank is expected to trim rates by 25 basis points to 3.75% on Thursday, which would make it the first major central bank to cut rates this cycle.
Turning to the energy market, crude oil prices fell sharply after OPEC laid out plans to remove the voluntary cuts earlier than expected, while European gas benchmark futures rallied amid concerns that consumers will have to raise LNG imports at a time of increasing competition in Asia, ANZ reported.
Crude oil prices (CL1:COM) dropped -2.12% to $72.65 a barrel by 6 am ET, while Brent (CO1:COM) shed -1.95% to $76.83.
Gas prices, however, dropped 3.5% from a six-month peak to below €35 per megawatt-hour Tuesday, after Gassco reported a two-day repair timeline for an outage at a Norwegian offshore platform, which disrupted gas exports to the UK.
Elsewhere, the estimated value of open interest across global commodity markets declined by -2% over the week to a three-week low of $1.45 trillion, as of May 31, driven by contract-based outflows across energy and precious metals markets, JPM reported.
The estimated open interest value in base metals markets reduced by $4.5 billion week-on-week to ~$214 billion, while those in precious metals markets declined by -6% to ~$186 billion, falling from record highs.
Recent Commodity Price Movements and A look At Some ETFs
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Energy
Metals
Agriculture
Commodity ETFs
Gold ETFs:
Other Metal ETFs:
Oil ETFs:
Agriculture ETFs:
