Commodities Mixed With Focus on Dollar, Iran Decision

Commodity prices finished mixed on Monday with metals being pressured by a strong U.S. Dollar, crude oil being supported by concerns over President Trump’s decision on the Iran nuclear deal and natural gas being helped by demand worries.

Copper

Copper prices continued to consolidate on Monday inside a key technical retracement zone, suggesting investor indecision and impending volatility.

The July Comex High Grade Copper futures contract settled at $3.0855, up $0.0160 or +0.52%.

The rising U.S. Dollar has been capping gains for the dollar-denominated futures contract. Uncertainty over a potential trade war between the United States and China has also helped limit the movement in the industrial metal for about two weeks.

Gold

Gold price inched lower on Monday, ending a three day winning streak after the U.S. Dollar hit its highest level against a basket of currencies since December 19.

June Comex Gold futures settled at $1314.70, down $8.70 or -0.66%.

Traders also said the lack of follow-through to the upside in reaction to Friday’s weaker-than-expected U.S. jobs report also weighed on gold prices. Worries that the U.S. Federal Reserve would proceed with its plan to raise interest rates at least two more times in 2018 also encouraged sellers to retake control.

Gold was also pressured by a less-hawkish European Central Bank and a widening interest rate differential between the United States and Europe which increased demand for the U.S. Dollar.

Finally, large gold investors have been slashing long positions in gold according to U.S. Commodity Futures Trading Commission Data. Net long positions on Comex gold contracts fell to their lowest since July 2017.

Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil rose to their highest levels since late-2014 on Monday, boosted by a looming decision on whether the United States will walk away from the Iran nuclear deal and the deepening economic crisis in Venezuela.

June WTI crude oil settled at $69.72, up $1.62 or +2.38% and July Brent crude oil finished the session at $74.87, up $1.08 or +1.46%.

Late in the session, prices retreated after President Trump announced in a tweet on Monday that he will deliver his decision on the Iran nuclear deal on Tuesday at 1800 GMT.

Natural Gas

Natural gas futures posted a volatile two-sided trade on Monday before forming a potentially bullish closing price reversal bottom. The buying came in at $2.695 as investors successfully defended the last main bottom at $2.691.

June Natural Gas settled at $2.711, down $0.060 or -2.17%.

The wicked price action was fueled by bearish investors banking on increased production and low demand, and bullish investors who feel the market will have trouble filling the huge storage deficit.