The prices of most commodities edged higher this week. Industrial metals rallied despite Chinese trade data showing that domestic demand had weakened at the end of 2017. Meanwhile, heightened geopolitical risk and another large fall in US crude stocks kept oil prices well supported.
Turning to next week, the US markets will be closed for Martin Luther King Day on Monday. The US Congress needs to reach an agreement to prevent a partial shutdown of the government by the end of the week but the uncertainty surrounding the deal could lend some support to the price of gold. On Thursday, the metals markets will closely watch China’s industrial output, investment and GDP growth data for a clearer picture of activity at the end of 2017. Efforts to reduce pollution and lower capital spending mean that activity probably slowed in December, which could weigh on the prices of industrial commodities.
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