Commodities Weekly Insights By Axis Securities Ltd
The Week That Was
* COMEX Gold extended its rally for the fifth consecutive week, a streak last observed in March 2024. Despite the U.S. dollar index surging nearly 1%, gold's upward momentum remained unscathed, surpassing $2,800 for the first time. This move underscores robust buying interest, further reinforced by strong ETF inflows into bullion. Additionally, escalating concerns over trade tensions, as the U.S. implements tariffs on Canada, Mexico, and China, have heightened safe-haven demand. Key economic data releases from the U.S. this week could introduce further volatility to bullion prices.
* COMEX Silver maintained a positive trajectory for the second consecutive week, closing above $31 for the first time in nine weeks—a bullish signal for prices. The recent surge in safe-haven demand, coupled with trade-related uncertainties, has provided strong support for the white metal. Additionally, The Silver Institute projects a fifth consecutive year of significant supply deficits in 2025, primarily driven by sustained industrial demand and retail investment. Key sectors such as solar energy, electric vehicles, and consumer electronics are expected to offset any softness in jewellery and silverware consumption.
* NYMEX Crude Oil extended its decline for the second consecutive week, losing over 1% amid bearish fundamentals. A weakerthan-expected inventory report added downward pressure, while a strengthening U.S. dollar further weighed on crude prices. Additionally, the resumption of Russian crude exports from the Baltic Sea port of Ust-Luga, following a temporary suspension due to Ukrainian drone strikes, contributed to the bearish sentiment. With most factors working against crude, prices may remain under pressure in the near term.
* COMEX Copper exhibited volatility last week, ultimately closing in negative territory as weak U.S. economic data and a rising dollar index dampened sentiment. However, the recently imposed U.S. tariffs on Canada, Mexico, and China could drive price fluctuations in the coming sessions, adding an element of uncertainty to the industrial metal's outlook.
Summary View For The Week
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