Commodity Roundup: Copper retreats from record high, crude oil gains after EIA forecast

[Tank ship loading unloading oil and gasoline at Commercial dock in sea]
CHUNYIP WONG

Gold prices traded 0.39% lower to $3,288 an ounce, hovering near one-week low, and pressured by rising Treasury yields and a stronger U.S. dollar (DXY [https://seekingalpha.com/symbol/DXY]). Silver prices dipped 0.44% to around $36.60 per ounce on Wednesday, marking their third consecutive decline.

Investors will closely watch FOMC minutes that will hint Federal Reserve’s policy outlook. A stronger-than-expected jobs report for June has dampened hopes for imminent rate cuts, further supporting the dollar and yields, both typically bearish for precious metals.

Also, global physically-backed gold ETFs racked up their largest six-month inflow since H1 2020 [https://seekingalpha.com/news/4465999-gold-etfs-amassed-largest-inflow-in-five-years-during-h1-world-gold-council-says] in this year's January-to-June period, with North American investors leading the charge, the World Gold Council said Tuesday.

Copper slumped the most among metals, down ~2.8% after Trump indicated a 50% [https://seekingalpha.com/news/4466022-copper-prices-touch-record-high-as-trump-threatens-50-tariff] tariff on all copper imports into the country, significantly escalating ongoing global trade tensions. The 50% copper tariff will likely take effect at the end of July or on August 1. Copper futures on Comex touched record high levels on Tuesday. However, copper contracts on the London Metal Exchange and the Shanghai Futures Exchange slipped today.

In oil markets, brent crude oil futures rose above $70.30 per barrel on Wednesday, touching more than two-week high as the risk of supply disruption emerged and a downward revision in U.S. production forecasts.

The Energy Information Administration said in its monthly forecast that U.S. oil production [https://seekingalpha.com/news/4466017-crude-oil-edges-higher-as-eia-trims-its-2025-us-oil-production-forecast] in 2025 would total less than previously expected, as declining oil prices have caused U.S. producers to slow activity this year.

MORE ON COMMODITIES

* Commodities: Oil Market Shrugs Off OPEC+ Supply Increase [https://seekingalpha.com/article/4799805-commodities-oil-market-shrugs-off-opec-plus-supply-increase]
* Gold Slips 1% And Flirts With $3300/Oz Support [https://seekingalpha.com/article/4799717-gold-slips-1-percent-flirts-with-3300oz-support]
* IAU: Understanding The Structure And Suitability Of This Gold ETF [https://seekingalpha.com/article/4799679-iau-understanding-the-structure-and-suitability-of-this-gold-etf]
* Crude oil edges higher as EIA trims its 2025 U.S. oil production forecast [https://seekingalpha.com/news/4466017-crude-oil-edges-higher-as-eia-trims-its-2025-us-oil-production-forecast]
* Gold ETFs amassed largest inflow in five years during H1, World Gold Council says [https://seekingalpha.com/news/4465999-gold-etfs-amassed-largest-inflow-in-five-years-during-h1-world-gold-council-says]