Commodity prices have come under fire into mid-2018 on a hawkish Fed, a stability-oriented Opec, and numerous other factors. The key fulcrum into Q3 is the developing trade war, which likely holds the keys to dollar and demand direction.
Saxo Bank's Quarterly Outlook for Q2 is here, with expert insights and trading themes from our team of strategists. Get your copy here.
Gold buyers return as the dollar changes direction
Gold trades back above $1,300/oz as it continues to recover from the near-5% correction that took it close to key support at $1,275/oz last week. The bounce that kicked off last Friday following the weak US jobs report is currently being supported by a weaker dollar as another failed attempt to break higher has attracted selling interest.
Upside potential in cotton
A significant speculative short-covering potential has emerged in cotton after hedge funds have driven the net-short to the highest since May 2007 following 30 weeks of selling.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/legal/disclaimer/saxo-disclaimer)