Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities

Archives

Copper & Crude Oil Rally, Gold & Silver Fall After WHO Announcement

January 31, 2020 at 8:16 by Vladimir Vyun

Commodities reversed their movement on Friday compared with Thursday. Copper and crude oil rallied, while gold and silver posted losses after an announcement from the World Health Organization alleviated fears of the Wuhan coronavirus a bit. The WHO declared a Public Health Emergency of International Concern but praised China for its efforts in containing the spread of the virus:

The very strong measures the country has taken include daily contact with WHO and comprehensive multi-sectoral approaches to prevent further spread. It has also taken public health measures in other cities and provinces; is conducting studies on the severity and transmissibility of the virus, and sharing data and biological material. The country has also agreed to work with other countries who need their support. The measures China has taken are good not only for that country but also for the rest of the world.

Furthermore, the WHO voiced hope that it is still possible to stop the further spread of the infection and also advised against travel and trade restrictions. The positive outlook improved the market sentiment, increasing the appeal of riskier commodities while limiting demand for the safer ones.

Market analysts are skeptical, though, that today’s trend will persist. The impact of the outbreak on global growth is likely to be very negative, and the world’s economy did not look that hot even before the event. Therefore, risk aversion is likely to return to markets fairly soon.

Futures for delivery of gold in April dropped by $9.4 (0.59%) to $1,579.8 per troy ounce as of 8:13 GMT on COMEX today. Silver for delivery in March declined by $0.14 (0.76%) to $17.86 per ounce. At the same time, copper rallied by $0.0115 (0.46%) to $2.5355 per pound. Contract for WTI crude oil jumped by $0.7 (1.34%) to $52.84 per barrel on NYMEX. Brent crude climbed by $0.67 (1.15%) to $58.96 per barrel on ICE.

If you have any questions and comments on the commodities today, use the form below to reply.

Leave a Reply

required
required  

Navigation

Menu