Commodities Overview


The fundamental landscape remains broadly supportive for commodity prices possibly heading higher for the rest of the month.

On the economic data front, US releases show New Home Sales hit a nine-month high at 321K in January while a revision of February’s University of Michigan consumer confidence gauge sees sentiment upgraded from the preliminary reading reported 2 weeks ago. Needless to say, signs of firming recovery in the world’s largest economy are directly beneficial for cycle – sensitive copper prices.

Supportive US data also offers a boost to gold and silver prices. On one hand, a pickup in growth against a backdrop of ultra – loose monetary policy stokes medium – term inflation expectations, boosting store – of – value demand for precious metals. On the other hand, a pick-up in risk appetite weighs on the safe-haven US Dollar, offering both metals a de-facto lift.

As for crude oil, while a risk-on environment is generally supportive, geopolitical considerations remain of primary near-term significance. The WTI contract has benefited from a swelling geopolitical risk premium as Iran-linked supply disruption jitters multiply, riding them to a nine-month high on Friday. Some profit taking could cause a short-term pullback and that could be seen as a buying opportunity for any Bulls or other traders who missed the opportunity to trade the breakout.

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Alfa Energy Group, an Edison Energy company, is an international energy, sustainability and technology consultant partner with 250 employees over 3 international locations. For over 25 years, Alfa has been servicing its clients’ needs through energy and water management, sustainability, and compliance consulting, and an intuitive ecosystem of user-driven energy, water, and carbon management software platforms. With coveted awards, an international industry-wide recognition, and clever simple solutions, today Alfa is partnering with clients to establish and deliver pivotal net zero strategies. Through smart energy management, the expertise and diligence of its people, transparent processes, and data management, Alfa continues to lead through its recognised gold standard of service delivery.