Commodities And Precious Metals Update (Week Ending May 15, 2020)

Stronger-than-expected Chinese auto sales helped support base metal prices early last week. Fed Chairman Powell’s comments on Wednesday, dismal U.S. retail sales and industrial production reports, and lower-than-expected China consumer sentiment numbers on Friday moved base metal prices lower throughout the rest of the week. 

Falling almost 1% on Monday with easing lockdown restrictions, gold prices rallied the remainder of the week reacting to weaker-than-expected U.S. economic reports, Fed Chairman Powell’s comments, and increasing U.S.-China frictions. Silver prices moved higher with gold prices, outperforming gold for the second consecutive week.

Wheat prices moved sharply lower, affected by increased global supply and better-than-expected weather in Europe. Soybean prices moved lower perhaps on concerns surrounding U.S-China trade frictions despite China purchases last week.

Coming up this week      

  • Busy week focusing on housing data and with Chairman Powell speaking before the Senate.
  • Housing market index on Monday.
  • Housing starts and Chairman Powell speaks.
  • Jobless claims, Philadelphia Fed business outlook survey, PMI composite flash, existing home sales and Chairman Powell speaks on Thursday.
  • EIA petroleum report on Wednesday and Baker-Hughes rig count on Friday.
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