Summary:

• US inflation data should offer the market guidance on the Federal Reserve's interest rate hike timeline.
• Natural gas futures prices dropped on Thursday as investors reacted positively to information from the EIA.
• Coffee futures prices remain supported by limited supplies and general real strength.

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(XAUUSD) Gold prices falling as US Dollar strengthens

Gold futures prices eased on Friday in the wake of a strengthening US Dollar and rising Treasury yields weighed on the safe-havens appeal in the run-up to the release of US inflation data that should offer the market guidance on the Federal Reserve's interest rate hike timeline.

The Fed is set to implement two more 50 basis point interest rate hikes at both its June and July meetings, following a move similar to the one in May, which has recently put pressure on gold. Meanwhile, global economic outlook risks that have arisen from the war in the Ukraine, persisting supply chain disruptions, high commodity prices and rising borrowing costs are all factors that are offering gold prices support.

XAUUSD Aug ‘22 Futures Price Chart

NGAS futures supported by rising demand and tight supplies

Natural gas futures prices dropped on Thursday as investors reacted positively to information from the EIA showing that the natural gas storage is built primarily in line with expectations. NGAS prices faced heavy pressure earlier in the trading week after an explosion at the Freeport oil and gas export terminal in Texas, which is set to leave fuel supplies stranded in the domestic market despite the soaring international demand.

Still, NGAS prices remained high this week amidst record demand for power in Texas, a fall in output and an intense rally for NGAS as Russia’s war on Ukraine sends energy markets scrambling.

NGAS Jul ‘22 Futures Price Chart

Coffee is supported by general real strength

Coffee futures prices remain supported by limited supplies and general real strength. Coffee dealers indicated that the market remains well supported by a limited flow from both Central America and Brazil, with Brazil, who is the top harvester and grower, lagging their historical average.

Coffee Sep ‘22 Futures Price Chart

Sources: finance.yahoo.com, tradingecnomics.com