Gold and copper lead the way in May – ShareCafe
A mixed end to May: For most of the world’s biggest and most important markets, the Memorial Day holiday in the US (and one in the UK as well) means Friday was the last session of the month.
And that includes commodities – although on Monday there will still be electronic trading for the United States and normal trading for Australia and other Asian commodity and equity markets (as in Dalian and in Shanghai).
Last week oil, gold, copper, tin, silver and nickel all rose.
Gold broke the key US $ 1,900 level on Friday, after data showed US consumer prices were rising faster than expected in April – 3.1% per year and a monthly increase of 0.7% in the main measure of inflation in personal consumption expenditure favored by the United States. Federal Reserve.
This scared some investors, but not in the bond market where the yield on the main 10-year Treasury bond eased to 1.58% on Friday. It was down for the day, week and through May and well below the most recent high of 1.77% at the end of March.
Most investors still accept the Fed’s view that the current spike in inflation will be transient.
Gold rose 7.7% in May based on Comex’s first month when the price stood at US $ 1,905.30 an ounce on Friday. It was up 1.3% for the week.
Gold prices have risen nearly US $ 200 an ounce over the past two months and are up US $ 220 from their 2021 low in March. ExCom gold jumped US $ 130 an ounce in May alone.
Oil prices edged up on Friday, with Brent hovering around US $ 70 a barrel. Brent rose 0.27% to US $ 69.65 per barrel, but US West Texas Intermediate (WTI) crude fell 0.36% to $ 66.61 US per barrel. Brent and WTI rose 3.5% and 4.3% respectively in May Based on Friday’s close for US investors. Brent will trade normally today (Monday).
The number of rigs in the United States increased by 2 units to 457 rigs in service for the week ended May 28, according to data from Baker Hughes. The number is up 156 units from the 301 platforms operating this time a year ago.
The number of US oil and gas rigs drilling on land increased by 2 units for the week to a total of 442. The number of offshore rigs was unchanged at 14.
US oil rigs were up 3 units from last week at 350. A year ago, 222 units were drilling for oil. Platforms targeting gas have fallen from one to 98, which is 21 more than gas drilling at the same time a year ago.
U.S. oil inventories totaled 484.3 million barrels, 2% below the five-year average, while U.S. production was estimated at 11 million barrels per day, unchanged.
Copper remains in the spotlight as traders ignored pressure from the Chinese government to put a brake on prices.
In New York, Comex copper stood at US $ 4.67 a pound on Friday, up 3.5% for the week and nearly 5% for May.
Helping stabilize copper prices after falling from an all-time high of $ 4.88 a pound in early May was the start of a strike late last week by 205 key workers who manage parts of the Escondida and Spence copper mines controlled in Chile. by BHP.
So far, production has not been affected and although the union tries to block the use of replacement workers, BHP is expected to prevail.
London Metal Exchange copper traded above US $ 10,300 per tonne, but faded to end around US $ 10,170 per tonne
Nickel and Tin also played Friday and last week at the LME.
Nickel prices rose more than 5% last week (despite a weak session on Friday) while tin hit a decade high with a 4.3% increase. All LME metal prices end higher than at the start of the week.
Tin also set a new year-to-date high on Friday at $ 30,960. The tin price was $ 30,749 per tonne Friday at the close, an increase of 2.8% from Thursday’s price and 6% since the start of the month, with the metal closing at US $ 28,990 per ton on May 4. Prices jumped after earthquakes following a volcanic eruption in Congo that disrupted exports of tin concentrate. It rose 2.8% to $ 30,749 in official business.
Aluminum LME fell 1.9% to US $ 2,434 per tonne, zinc fell 0.3% to US $ 3,053.50, lead was little changed to US $ 2,202 and nickel fell 0.3% to end at US $ 17,843.
And iron ore prices fell during the week despite tiny increases on Thursday and Friday (less than US $ 1 per tonne).
The week’s drop pushed fine prices down to 62% Fe and 58% Fe at a brief stint with bears (a 20% drop from the most recent high).
The price of 62% Fe fines ended the week at US $ 190.51 per tonne, down US $ 21.34 per tonne or 10%. The price of 58% Fe fines delivered to North China ended at US $ 162.80, down 10% or US $ 18 per tonne for the week and the price of 65% Fe fines delivered to northern China fell US $ 20 per tonne or 8% to US $ 222.41.90 per tonne.