Commodities market mixed, gold prices eased - ANZ

The research team at ANZ explains that commodity markets were mixed overnight while gold prices eased as the USD firmed amid mounting expectations of a rate hike in June by the Fed, while reports that OPEC will likely announce an extension to its production curbs when it meets later this week. 

Key Quotes

“Crude oil. West Texas Oil West Texas crude reached its highest level since 20 April falling just shy of USD 51.80 overnight. The commodity is being buoyed by news that Saudi Arabia is garnering support for an extension of production cuts ahead of the OPEC meeting in Vienna this Thursday.”

“Base metals were mixed overnight. Zinc prices gained amid expectations of firmer Chinese import demand following news that both domestic production and inventories on the Shanghai exchange were falling.”

“Iron ore eased despite strong steel production and prices. Chinese steel producers are increasingly opting to take advantage of low scrap prices.”

“Gold eased as the USD bounced off recent lows as expectations about a Fed tightening firmed. Palladium posted a solid rise supported by buoyant expectations of car sales.”