XAUUSD Prices Rise As Investors Turn To Safer Assets, Cotton Prices, NGAS Prices Still Rising As Concerns Around Supply Continue| FXMAG.COM

Summary:

Gold prices rose the past week in the wake of a weakening US Dollar.
Concerns around cotton supply persist.
NGAS prices are still rising as concerns around supply persist

Gold (XAAUSD) prices on the rise

The US Dollar had a softer start to the week amidst concerns around a slowing economy and the possibility of a recession. On Tuesday U.S benchmark yields rose as equities rallied. Investors seem to be seeking safer investments such as gold as the market awaits the Fed Chairs comments on key economic data, such as, PCI and first quarter GDP. Therefore, the price of gold is rising.

XAUUSD Prices Rise As Investors Turn To Safer Assets, Cotton Prices, NGAS Prices Still Rising As Concerns Around Supply Continue - 1

XAUUSD Jun ‘22 Futures Price Chart

Cotton futures prices

Cotton prices dropped from their 11 year peak of $158 in early may. There are still concerns around supply as the droughts in Texas continue and global protected supply numbers are also falling, whilst demand is remaining stable in the post-covid world.

XAUUSD Prices Rise As Investors Turn To Safer Assets, Cotton Prices, NGAS Prices Still Rising As Concerns Around Supply Continue - 2 Cotton Jul ‘22 Futures Price Chart

Increased demand for NGAS is pushing up the price

There is a higher international and domestic demand for Natural gas, which is driving the price of the NGAS futures up. The world is experiencing an energy shortage in the wake of Russia’s war on Ukraine. However, higher production and exports (especially in the US) should help limit the upward price momentum going forward.

XAUUSD Prices Rise As Investors Turn To Safer Assets, Cotton Prices, NGAS Prices Still Rising As Concerns Around Supply Continue - 3 NGAS Jun ‘22 Futures Price Chart