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Spot silver (XAGUSD:CUR) gained more than 1% on Friday, reaching its highest since early December, and over 3% so far this week, on its way to clock a third straight week of gains.
“In contrast to gold, silver is still a long way from reaching a record high. For this to happen, the price would have to double from its current level. Although we do not expect this to happen in the foreseeable future, we see significant upside potential for silver,” Commerzbank analyst Carsten Fritsch said in a note.
The Bank has raised its year-end forecast to $29, and has confirmed its forecasts for platinum and palladium at $1,100 per troy ounce, respectively, as both prices have barely been able to benefit from the rise in gold and silver prices and are still trading below their year-end levels.
Silver vs gold in the past five days:
Gold prices meanwhile were set to snap a three-week gaining streak, after the latest economic readings out of the U.S. showed inflation was proving sticky, prompting investors to dial back expectations on Fed rate cuts this year. Spot gold (XAUUSD:CUR) was up +0.45% to $2,170.74 an ounce by 6:15 am ET, but down marginally on the week.
The PPI reading came on the back of data that showed U.S. consumer price index rose more than expected in February. Although gold is seen as a hedge against inflation, higher interest rates raise the opportunity cost of holding bullion.
Turning to energy commodities, oil prices were trading lower, but headed for weekly gains as markets assessed the situation in the Red Sea, along with demand forecast from the IEA and OPEC. Brent rose to a four-month high on Thursday, breaching $85 for the first time since early November.
However, the report by the US Energy Information Administration contains a forecast correction that will at least slightly dampen the medium-term price outlook, Commerzbank added.
“The Chinese crude oil processing figures, which the National Bureau of Statistics will publish as part of its report on industrial production in January/February, could also cause price movements in the coming week,” it added.
Meanwhile, a report by J.P.Morgan Commodities Research said, the focus is once again on Russia and its pledge to cut production to 9.0 mbd by June. But brokerage “is less convinced about the country’s pledge to further reduce exports above the 500 kbd reduction committed to last November, given Russia’s track record.”
Among agricultural commodities, cocoa prices rose more than 1%, set for its best week in nearly a month. Since the beginning of the year, the price of cocoa has risen nearly 80%. Reports suggest, some cocoa plants in the Ivory Coast and Ghana have stopped or cut processing for this season because they cannot buy beans at affordable prices.
Stocks to watch: Futurefuel (FF) +21%, American Battery Technology (ABAT) +15%, Critical Metals (CRML) +12%, Loop Industries (LOOP) +5%, VAALCO Energy (EGY) +20%, ProFrac Holding Corp (ACDC) +6%.
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:
