Summary:
- The US Dollar’s rebound and stronger treasury yields have caused the price of gold to fall.
- Cotton prices are falling due to decreasing demand and improved supplies.
- NGAS on the rise again.
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XAUUSD price coming down off its recent recovery
Gold prices began to rise late last week and on Monday, however, on Tuesday Gold prices fell in the wake of the US Dollar rebounding and stronger US Treasury yields. Gold has recovered some of the losses it faced earlier on in May due to the surging US Dollar. Concerns around a global recession and the chance of the Fed slowing or even stopping tightening monetary policy later on in the year has offered the precious metal some support.
Gold Aug ‘22 Futures Price Chart
Cotton prices falling due to lessening supply concerns
Cotton prices are trading around 10% less than their May high, this is due to the prospect of higher supplies thanks to favourable weather in the largest growing regions. More than half of the crop had been planted by May 22nd and was ahead of schedule by this time, therefore offering hope for solid yields. In conjunction, demand for cotton seems to be weakening amidst inflationary pressures.
Cotton Jul’22 Futures Price Chart
Natural Gas Futures prices
Natural Gas prices continue to rise, reaching closer to the peak hit last week. The near 14 year high for Natural Gas came with increased demand and concerns around supply, the price fluctuations are due to decreased demand as the weather changes, robust demand and slow output.
NGAS Jul ‘22 Futures Price Chart
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Sources: tradingeconomics.com, finance.yahoo.com
