FXStreet (Guatemala) - Analysts at ANZ noted the key events surrounding the commodity sector to this point this week.
Key Quotes:
"Crude oil prices were volatile. Oil prices were under pressure during the day - WTI prices fell below USD35/bbl before a rebound rally overnight provided some support. The weakness in the front end of the curve has led to a widening of the spread between December 2016 and January 2016 to approximately USD9/bbl. The steep contango will result in increasing carry trade opportunity. Recent CFTC data also suggest further downside risks to the front end of the curve. On the other side, US gas prices are trading at 13-year lows amid a warmer weather forecast.
base and precious metal prices were mixed. The stronger than expected Chinese data supported the rally across the base metal complex during the Asian trading session, but the rally petered out during London trading, with concerns over the sustainability of recovery in demand. On the precious side, gold continues to weaken as investors await this week’s FOMC. We believe the pace of the rate hikes will hold the key for gold prices in the coming year."
