Commodities Surge as Gold Hits Long-Term Highs

By Tomasz Wisniewski|

Published: September 26 2024, 11:07 GMT+0

Commodities Surge as Gold Hits Long-Term Highs

Hello traders, welcome to Thursday! Today, the spotlight is on commodities, which are experiencing impressive movements across the board. Gold is surging to new long-term highs, and other metals like silver, platinum, and copper are all in the green. Soft commodities are also joining the rally, with sugar up a staggering 24% over the past 10 days and cocoa rising by 8%. These significant jumps hint at potential price increases in consumer goods, like chocolate, in the near future. However, oil stands out as the underperformer, dropping sharply by over 2% today, diverging from the overall bullish trend in commodities.

As expected, the surge in commodity prices has bolstered commodity-linked currencies. The Australian and New Zealand dollars are leading the currency pack, reflecting the strength in raw material prices. On the other hand, the US dollar, Japanese yen, and euro are struggling, all flashing red today. Meanwhile, indices are showing robust performance, with major stock markets climbing higher. Itā€™s been a strong session for equities, supported by the positive sentiment around commodities.

In terms of the macro calendar, we had notable data releases yesterday. New home sales in the US exceeded expectations, while crude oil inventories fell short, yet this didnā€™t prevent oil prices from falling. Today, weā€™ve already seen a significant event with the Swiss National Bank cutting interest rates by 25 basis points, down to 1%. Looking ahead, the market is waiting for final GDP figures from the US, which are expected at 3%. We also have unemployment claims, durable goods orders, and speeches from Fed Chair Jerome Powell and ECB President Christine Lagarde later today. Stay tuned for potential market shifts as these events unfold!

Source: https://www.axiory.com/analytics/market-news/commodities-surge-as-gold-hits-long-term-highs

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