Commodities Weekly Insights By Axis Securities Ltd
The Week That Was
* Comex Gold extended its rally in the last session, closing with a strong gain of over 1.8% as investors sought refuge in safehaven assets amid ongoing uncertainty surrounding Russia-Ukraine peace negotiations. A sharp decline of more than 3% in the U.S. Dollar Index, which is now hovering near its lowest level since November, further strengthened gold’s appeal. Additionally, weaker-than-expected U.S. non-farm payroll data increased the likelihood of a Federal Reserve rate cut, providing further support to gold prices. The market focus now shifts to the upcoming CPI data, which could add to bullion price volatility..
* Comex Silver surged over 4% last week, posting its strongest weekly gain since October 2024. The metal reclaimed levels above $32.50, supported by a weaker dollar and rising safe-haven demand amid growing market uncertainty. Additionally, the rally in base metals boosted sentiment for silver, given its dual role in both jewelry and industrial applications.
* NYMEX Crude Oil tumbled over 4% last week, marking its worst weekly performance since November 25, 2024. The decline was driven by multiple headwinds, including uncertainty over U.S. trade policies, weakening demand prospects, and expectations of higher output from major oil producers. While President Donald Trump eased some tariffs on Mexico and Canada until April 2, retaliatory measures from Canada remain in place, with China’s countermeasures set to take effect next week. Additionally, OPEC+ plans to raise production in April, coinciding with the potential restart of the Kirkuk-Ceyhan pipeline and rising output at Kazakhstan’s Tengiz field, fueling concerns over a possible supply glut.
* Comex Copper extended its winning streak for the second consecutive week, climbing over 3% last week, driven by optimism over China’s economic stimulus measures. Chinese Premier Li Qiang reaffirmed a GDP growth target of approximately 5% for 2025, with local governments authorised to issue up to 4.4 trillion yuan in special-purpose bonds to boost investment. The announcement strengthened positive sentiment in the copper market, given China’s significant influence on global metal demand.
Summary View For The Week
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