Commodity Roundup: Gold snaps 5-week winning run, Brent hovers near $90/bbl

Gold prices (XAUUSD:CUR) on Friday were on course to snap a five-week-long winning streak, amid a shift in Fed rate cut expectations, as market focus turns to the next policy meeting, and Chair Jerome Powell’s commentary.

Data on Thursday showed, U.S. economic growth slowed more than expected in the first quarter, but a surprisingly hot quarterly Personal Consumption Expenditure inflation component suggested that the central bank would not cut interest rates before September.

The Fed holds its next policy meeting on April 30-May 1, with the policy rate expected to be left on hold in the current range.

Although gold is seen as an inflation hedge, higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest. However, several analysts say, gold remains well-supported by accelerated central bank buying of gold, amid persistent geopolitical tensions and risks of sanctions.

Elsewhere, oil benchmarks ticked up on the day, set for a weekly gain after two-consecutive declines, as traders monitor Middle East tensions and supply risks. Brent rose toward $90 a barrel, and is up more than 2% for the week, while West Texas Intermediate climbed above $84 earlier in the session.

The Federal Reserve’s preferred inflation figure is due later Friday, coming hard on the heels of data showing weaker US economic growth.

Israel meanwhile, stepped up air strikes on Rafah after saying it would evacuate civilians from the southern Gazan city and launch an all-out assault, despite allies’ warnings this could cause mass casualties.

On the company side, Exxon Mobil (XOM) and Chevron (CVX) head into their first-quarter earnings reports on Friday. The consensus EPS estimate for XOM is $2.18 and the consensus revenue estimate is $81.51B. The consensus EPS estimate for CVX is $2.90 and the consensus revenue estimate is $50.71B.

Recent Commodity Price Movements and A look At Some ETFs