Copper Prices Surge to 6 Week High as Investors Respond to weaker U.S. Dollar
Copper prices surged to their highest level since January 4 last week, supported by a weaker U.S. Dollar and robust prospects for global growth. A stable stock market and aggressive position-squaring ahead of the Lunar New Year holiday also helped drive prices higher.
May Comex High Grade Copper futures settled the week at $3.2685, up $0.2155 or +7.06%.
Gold
Gold futures hit a three-week high last week as investors responded to a weaker U.S. Dollar and expectations for higher inflation while showing almost no reaction to a recovery in U.S. stock markets and a sharp rise in U.S. Treasury yields to a four-year high.
April Comex gold futures finished the week at $1356.20, up $40.50 or +3.08%.
This was also the market’s biggest weekly gain in nearly two years.
Crude Oil
U.S. West Texas Intermediate and international-benchmark Brent crude oil futures close higher last week after the U.S. Dollar fell to a three-month low and global equity markets posted their biggest weekly gain in six years. A weaker dollar often boosts oil and other dollar-denominated commodities.
April WTI crude oil settled at $61.55, up $2.56 or +4.34% and April Brent cruel oil finished the week at $64.84, Up $2.05 or +3.26%.
The upside was limited, however, due to a projection for rising U.S. production.
Also supporting oil prices was a statement from the United Arab Emirates energy minister saying oil producers led by Saudi Arabia and Russia to draft an agreement on a long-term alliance by the year end.
Earlier in the week, Saudi Energy Minister Khalid al-Falih said OPEC hopes to keep limiting crude output to leave the market tight.
In other news, U.S. drillers added 7 oil rigs in the latest national count kept by oilfield services firm Baker Hughes. The count has risen by 51 oil rigs in the last four weeks, putting the total at a nearly three-year high of 798.
Natural Gas
Natural gas futures inched higher last week as investors reacted to the U.S. government storage report and mixed weather outlook.
April Natural Gas futures settled the week at $2.598, up $0.001 or +0.04%.
Earlier in the week, the U.S. Energy Information Administration (EI) announced an estimated 194 Bcf draw from storage for the week-ended February 9, above the 183 Bcf draw expected by a consensus of analysts, and well above the 154 Bcf withdrawal average over the past five years.
The withdrawal brought the national stock deficit to the five-year average to an estimated 18.7%, according to the EIA data.
This article was originally posted on FX Empire