Gold (XAUUSD) Prices Are Falling, Expectations Of Cooling NGAS Demand, Cotton’s Demand Weakening
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Summary:
- Gold prices are under pressure from a rallying US Dollar.
- NGAS prices have dropped as expectations of cooling demand strengthened as the summer season approaches.
- Inflationary pressures and re-imposed Chinese lockdowns vs Cotton prices
XAUUSD prices falling in the wake of broad market sell-off
On Tuesday Gold futures are trading at around four-week lows after falling nearly 3% during Monday's trading session. Gold prices remain under pressure from a rallying US Dollar and Treasury yields as investors are bracing themselves for more aggressive monetary policy tightening from the Federal Reserve Bank. Aggressive interest rate hikes have also instilled fears of a recession in the US economy which drove further selling and forced liquidation across the financial markets, including with gold.
XAUUSD Price Chart
Natural Gas demand falling as the summer season approaches
Natural gas prices dropped in the past two trading sessions in the wake of investors' expectations of cooling demand strengthened as the summer season approaches. In addition, a recent explosion at a major Texas LNG terminal has made room for more natural gas to enter the market, due to the facility being offline for at least another 3 weeks. The extra supply in the market could bridge the gap between the current inventory levels and the 5-year average, which has been one of the driving forces behind the quarters natural gas rally.
NGAS Futures Price Chart
Demand weakening for Cotton
Cotton futures prices are trading near 2-month lows due to expectations of higher supply and weaker demand. Cotton demand is expected to decrease due to inflationary pressures and the largest consumer, China re-imposes covid-19 lockdowns.
Cotton Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
