Commodities wrapped up; extreme movements – ANZ

By FXStreet FXStreet (Barcelona) – Analysts at ANZ explained that Crude oil prices were sharply higher and noted the action in the commodities sector in general.

Key Quotes:

“The bounce in crude oil prices was extreme, with prices up 10% from the low. Prices rose with a decline in the US dollar and despite steep gains in US crude inventories.

Stockpiles rose to more than 500m bbl for the first time since 1930. EIA data suggest US crude stocks climbed 7.79m bbl to 502.7m bbl last week. The increase was more than double what the market was expecting.

Base and precious metal prices were strong. The gold price remained resilient amid safe haven buying. Physical gold demand from key buyers is also strong. In a recent announcement, China’s Gold

Association said domestic gold consumption for 2015 rose 3.7% to 985.9t. We believe the weaker yuan and rising global growth concerns will continue to attract the interest of Chinese buyers in 2016.

Iron ore prices were stronger. The iron ore price continues to gain before the holiday season but liquidity is thin, with steep declines in trading volumes. On the corporate side the rating agencies continue to downgrade steel companies. In a recent move Moody’s cut JSW Steel …read more

Source:: FX Street