Head of Commodity Strategy
Summary: Weak data, a strong US dollar and trade war uncertainty saw the commodities focus shift from supply constraints to demand concerns in the week ending May 21.
Gold’s frustrating lack of response to weaker stocks and lower bond yields helped trigger a 42k reduction in the net-long, more or less what was added the previous week. The silver net-short doubled to 31k lots, a six-months high.
Click here for the latest update discussing the current developments in gold.
In soft commodities, both sugar and cotton hit fresh record shorts before the latter jumped by the most since July. Coffee was bought before posting the biggest weekly gain in seven months on weather concerns and a stronger BRL.
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