Commodities: WTI, gold hit as dollar bounces from near 52-week lows
28-03-2018 18:57
The commodity complex was broadly lower on Wednesday, as the Greenback found a bid near its 52-week lows.
As of 1842 BST, the Bloomberg commodity index was lower by 0.58% to 86.76, alongside a 0.61% bounce in the US dollar spot index to to 89.919.
Weakness was especially prominent in the energy segment, with West Texas Intermediate for prompt month delivery retreating 1.78% to trade at $64.09 a barrel on NYMEX.
That followed the release of weekly DoE data showing a 1.6m barrel increase in the US oil inventories. Nevertheless, despite a sharp 1.1m barrel a day jump in imports, product stockpiles declined sharply, as refineries ramped-up to 92.3% of operating capacity.
Over the week ending on 23 March, gasoline stocks were down by 3.5m barrels and those for distillates by 2.1m barrels, the DoE said.
Gold for next month delivery on COMEX was also lower, losing 1.33% to $1.330 per metric tonne.
LME-traded base metals on the other hand were mostly higher, with copper not an exception although it remained below a key level of technical support, its 200-day moving average.
"Copper stocks continue to rise on the LME and unless we get some serious strike news, it's hard to get too bullish and we need a good break above 6750 to regain any bullish momentum and at least back above the 200 day MA at 6690 to get out of this short term down trend," said analysts at Sucden Financial.
In soft commodities, ICE traded cocoa futures was strong, with the May contract tacking on a further 1.68% to $2,597.0 per metric tonne.
On the flip side, cotton#2 futures were down by 1.39% to $8.088 a bushel.
