XAUUSD Prices Rise As Investors Turn To Safer Assets, Cotton Prices, NGAS Prices Still Rising As Concerns Around Supply Continue
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Summary:
- Gold prices rose the past week in the wake of a weakening US Dollar.
- Concerns around cotton supply persist.
- NGAS prices are still rising as concerns around supply persist
Read next: Demand For Brent Crude Oil Rises, Silver Prices Rise, Improved Corn Crop Eases Supply Concerns
Gold (XAAUSD) prices on the rise
The US Dollar had a softer start to the week amidst concerns around a slowing economy and the possibility of a recession. On Tuesday U.S benchmark yields rose as equities rallied. Investors seem to be seeking safer investments such as gold as the market awaits the Fed Chairs comments on key economic data, such as, PCI and first quarter GDP. Therefore, the price of gold is rising.
XAUUSD Jun ‘22 Futures Price Chart
Cotton futures prices
Cotton prices dropped from their 11 year peak of $158 in early may. There are still concerns around supply as the droughts in Texas continue and global protected supply numbers are also falling, whilst demand is remaining stable in the post-covid world.
Cotton Jul ‘22 Futures Price Chart
Increased demand for NGAS is pushing up the price
There is a higher international and domestic demand for Natural gas, which is driving the price of the NGAS futures up. The world is experiencing an energy shortage in the wake of Russia’s war on Ukraine. However, higher production and exports (especially in the US) should help limit the upward price momentum going forward.
NGAS Jun ‘22 Futures Price Chart
Sources: finance.yahoo.com, tradingeconomics.com
