Commodity Roundup: Gold eases as steady dollar dampens appeal, oil prices mixed

Precious metals ticked lower on Tuesday, with gold trading around $2,315.12 an ounce, as a steady U.S. dollar made bullion less affordable for overseas buyers, while investors awaited further clues on when the Federal Reserve would deliver its first interest rate cut.

After the U.S. central bank last week signaled it was leaning towards eventual reductions in borrowing costs, but wanted to gain “greater confidence” that price pressure will continue to fall before cutting rates, policymakers reiterated that message on Monday.

Richmond Fed President Thomas Barkin said the current interest rate level should cool the economy enough to return inflation to the central bank’s 2% target.

Meanwhile, Federal Reserve Bank of New York President John Williams said while rate cuts would happen, monetary policy was currently in a very good place, and he looks at the “totality of data” to decide on how to approach rates.

The U.S. dollar index (DXY) edged up 0.1% against its rivals, making greenback-priced gold more expensive for buyers holding other currencies.

Among agri commodities, the latest data from the International Coffee Organization shows that global coffee exports rose to 13m bags in March, up 8.1% YoY, ING reported. This includes Arabica exports of 7.4m bags (up 9.7% YoY) and Robusta exports of 5.6m bags (up 6% YoY). Cumulative exports for October 2023 to March 2024 rose 10.4% YoY to 69.2m bags. Coffee futures (KC1:COM) were trading -1.34% lower at $195.05.

CFTC data shows that money managers reduced their net short in CBOT wheat by 28,318 lots to 47,866 lots as of 30 April, the least bearish position since the week ending 1 August 2023.

Elsewhere, oil prices were mixed with Brent trading in green, while WTI crude slightly down, after Israel struck Rafah in Gaza and talks for a ceasefire hung in the balance.

Potentially relevant stocks: Idaho Strategic Resources (IDR), Dakota Gold (DC), Hycroft Mining Holding (HYMC), Endeavour Silver (EXK), Origin Materials (ORGN), Braskem S.A. ADR (BAK), Alpha Metallurgical Resources (AMR), Nature Wood Group (NWGL).

Recent Commodity Price Movements and A look At Some ETFs