Gold Futures Prices Rise: Impact on Commodity Markets April 4th, 2024

Gold futures prices rose on Wednesday, breaking the $2,300 barrier for the first time, according to Ricardo Evangelista, senior analyst at ActivTrades. The retreat of the dollar contributed to gold price gains, but the primary impetus stemmed from a sudden downturn in global market risk appetite following the earthquake in Taiwan, which may have hit vital infrastructure for the global semiconductor market.

Copper and Aluminum Futures Rise

Copper futures rose 2.9% to $9,274.5 a ton, while aluminum futures gains 2.6% to $2,434.5 a ton.

Bond Market Showing Signs of Topping

The bond market is showing signs of topping as bond prices gently rise after a rapid descent earlier this week amid persistently strong economic growth and stubborn inflation. Tomorrow’s non-farm payrolls report will be key for direction, although traders appear to have already priced in a strong jobs report. That said, if we meet or miss expectations, it could offer more relief. Traders expect to see 200,000 jobs added for March, which would be down from recent months.

Movements of Various Commodity Futures Markets

Wheat futures rebounded on Wednesday after a round of short covering, technical trading, a weakening dollar, and geopolitical news. Corn futures also firmed on short covering, but gains were limited by ample supplies and forecasts for good planting weather. Soybean futures bounced from one-month lows due to lackluster demand and increasing South American supplies. US crude oil prices hit the highest levels since late October on concerns about supply disruptions due to Ukraine's attacks on Russian refineries and a vow of revenge against Israel by Hamas-backer Iran. US equity markets were mixed on Wednesday, with the Dow industrial index slipping while the Nasdaq and S&P 500 gained. The US dollar index closed lower on Wednesday. US gold futures jumped higher on Wednesday.