Oil Surges 3% on US-China Trade Talk Hopes
Oil prices surged by approximately 3% on Thursday, buoyed by expectations of a potential breakthrough in the upcoming trade negotiations between the US and China, the world’s top two oil consumers.
Brent crude oil rose by $1.72, or 2.8%, to $62.84 per barrel. West Texas Intermediate crude increased by $1.84, or 3.2%, to $59.91 per barrel.
US Treasury Secretary Scott Bessent is set to meet with China’s top economic official on May 10th in Switzerland to discuss their ongoing trade conflict, which has been disrupting the global economy. Ole Hvalbye, an analyst at SEB, noted that the optimism surrounding these talks is providing support to the market.
As the two largest economies in the world, any fallout from their trade disputes could potentially curb the growth in crude oil consumption.
Gold Falls Over 1% on US-UK Trade Deal
Gold prices continued their decline, falling over 1% on Thursday after US President Donald Trump announced a trade deal with the UK, raising hopes for similar agreements with other nations.
Spot gold dropped by 1.7% to $3,307.84 per ounce, while gold futures for June 2025 fell by 2.5% to $3,306.
President Trump and UK Prime Minister Keir Starmer unveiled a “breakthrough” trade agreement. The deal maintains a 10% tariff on imports from the UK, while the UK agreed to lower tariffs from 5.1% to 1.8% and enhance access for American goods.
Gold holdings in London vaults rose in April as more of the precious metal was transferred from New York following price declines. Market participants had boosted gold deliveries to the US from December through March to protect their long positions on the COMEX ahead of potential US import tariffs.
Iron Ore Falls on Weak Demand Expectations
Iron ore prices fell on Thursday as traders considered the possibility of weak demand amid predictions of decreasing crude steel output in China, the world’s top consumer.
The September iron ore contract on the Dalian Commodity Exchange (DCE) in China fell by 2.73% to 693.5 yuan ($95.82) per ton, the lowest since April 11th.
The June iron ore contract on the Singapore Exchange fell by 1.95% to $96.40 per ton.
“It’s mainly expectations of cuts in steel output that are driving the market, with prices of steelmaking ingredients falling faster than steel itself,” said Zhuo Guiqiu, an analyst at Jinrui Futures brokerage.
In March, China announced plans to restructure its massive steel industry through output cuts, without specifying a timeline or scale.
Copper Rises on Improved Investor Sentiment
Copper prices rose on Thursday, boosted by investor sentiment after US President Donald Trump stated that he expected import tariffs on Chinese goods to fall.
Three-month copper on the London Metal Exchange (LME) gained 0.2% to $9,439 per ton.
Traders said Trump’s comments raised hopes for a de-escalation in tensions between the US and China, the top consumer of industrial metals, providing support to copper prices, which were also buoyed by falling inventory levels.
Copper inventories at warehouses monitored by the Shanghai Futures Exchange recently posted a substantial decline, while stockpiles held by COMEX reached their highest since late 2018.
Rubber Hits 3.5-Week High on Supply Concerns
Rubber prices in Japan rose on Thursday, surpassing the 300 yen mark to reach their highest level in three and a half weeks, amid concerns over supply tightness due to low domestic inventories and slower production in Thailand, the world’s largest producer.
The October rubber contract on the Osaka Exchange (OSE) closed 1.6 yen, or 0.5%, higher at 300.6 yen ($2.10)/kg, marking the sixth straight session of gains and the highest settlement since April 14th.
However, the September rubber contract on the Shanghai Futures Exchange (SHFE) fell by 160 yuan to 14,710 yuan ($2,033)/ton.
The June rubber contract on the SICOM Exchange in Singapore rose by 0.3% to $0.30 per kg.
Coffee Prices Climb
Arabica coffee prices rose by 3.25 cents, or 0.8%, to $3.8735 per lb, while Robusta coffee increased by 0.5% to $5,265 per ton. The coffee market currently lacks a clear overall trend.
Exports from Brazil, the world’s largest producer, fell by 31% in April compared to the same period last year, indicating tight supplies.
In Asia, farmers in Vietnam’s Central Highlands, the country’s largest coffee-growing region, sold coffee beans at VND128,000-129,000 ($4.93-$4.97) per kg this week, down from VND130,000-130,500 two weeks ago.
Robusta 5% black and broken beans were offered at a discount of $200-300 per ton to the July contract on the London market.
Soybeans Rise, Corn and Wheat Slip
Soybean futures prices inched higher on Thursday in Chicago due to rising soyoil futures and hopes that the upcoming US-China trade talks in Switzerland could ease trade tensions.
Wheat and corn futures prices fell due to favorable planting weather and growing conditions in the US.
Soybean prices on the Chicago Board of Trade (CBOT) rose by 2-3/4 cents to $10.42-1/2 per bushel. Wheat prices at the CBOT fell by 8-1/4 cents to $5.26 per bushel. Corn prices dropped by 6-1/2 cents to $4.42-3/4 per bushel, the lowest since March 28th.
Cocoa Plunges Nearly 2%
Cocoa futures on the London market fell by £128, or 1.9%, to £6,576 per ton, nearly erasing the previous session’s 3.9% gain. On the New York market, cocoa fell by 1.4% to $9,068 per ton.
With the May futures contract expiring next week, the market focus has shifted to the near-term contracts. On the supply front, cocoa supplies from Nigeria are on the rise.
Commodity Price Movements on May 9th
The VN-Index Surges by 41 Points Post-Holiday Week
“For the week of May 5th to May 9th, the VN-Index witnessed a robust upward trend, with four out of five trading sessions ending in the green. On May 9th, the index witnessed a slight dip, closing at 1,267.3 points, which still marked a notable 41-point increase compared to the closing value on April 29th.”
Has Gold Entered a Bubble Era?
Gold is shining brighter than ever as investors worry about soaring inflation and the stability of the US dollar. However, for long-term investors, it may be wise to consider diversifying into other commodities.
“Global Markets Rally Ahead of Crucial US-China Trade Talks”
The global markets are abuzz with activity as oil, gold, rubber, and coffee prices, along with US agricultural products, surge ahead of the highly anticipated US-China tariff talks scheduled for later this week.
The Golden Rush: A Shocking Drop in Gold Prices Leaves PNJ Empty-Handed
PNJ, a leading jewelry company, announced an unprecedented shortage of SJC gold bars and plain gold rings across its entire network. In a surprising turn of events, the price of SJC gold bars took a dramatic dip on April 19th, leaving customers with a rare opportunity to seize.
Gold Prices Soar Following US’s 90-Day Tariff Reprieve
Global gold prices continued their upward surge during the trading session this morning (April 10th, Vietnam time), despite improved investor sentiment following US President Donald Trump’s announcement of a 90-day delay in retaliatory tariffs and a reduction to 10% for economies other than China.
