Commodities were weaker led by oil and gold – ANZ

Research Team at ANZ, notes that the commodities were weaker in the last session as investor appetite for risky assets such as commodities waned.

Key Quotes

“Oil prices reversed the previous day’s gain as investors presumed the huge inventory build last week was likely only temporary due to the tropical storm. OPEC talks about a production freeze continue, with meetings ongoing on Friday. Saudi Arabia also said its output fell by 40kb/d to 10.6mb/d in August.

Gold prices came under heavy selling pressure as losses in equity markets and the stronger USD weighed on investor sentiment. This also saw base metals end the week on a negative note, despite some supply disruptions in the copper market. Workers at the Los Bronces copper mine in Chile continued their strike, while Congo’s export route for the copper industry was shut down due to clashes between local residents and security forces. Physical prices in iron ore took their cue from weaker futures markets in China, as investors took increasingly bearish positions ahead of steel industry shutdowns.”