#Commodities#: #Gold# trades near USD 4,200, recovering from a challenging week that saw prices fall to a two-month low as bond yields surged to fresh multi-year highs. The rebound has been supported by a recovery in US Treasuries following a well-received 30-year bond auction, alongside some easing in oil prices, although fuel costs remain elevated. Gold ETF demand has remained remarkably resilient throughout the recent surge in yields, with total holdings rising to a fresh four-year high on Thursday. Combined with renewed Chinese demand following the Golden Week holiday, this underlying investment appetite is helping bullion recover and challenging recent attempts by short sellers to push prices lower. Brent #crudeoil# trades near USD 103, retreating from Thursday's high near USD 106 after Trump ruled out an attack on Iran ahead of the US midterm elections. This signals a potential three-week period of relative calm, which, provided Iran refrains from further escalation, could allow crude exports from the Gulf to remain elevated. However, the underlying stress in the oil market remains concentrated in refining capacity and the availability of refined products, particularly middle distillates such as diesel and jet fuel. Gulf product exports are estimated at around 50% of pre-war levels (Kpler), highlighting the continued supply shortfall. A sustained recovery in refinery operations and product exports will therefore be essential before the market can begin to normalise, even as crude flows continue to improve. The Bloomberg Commodity Total Return Index is heading for its first weekly gain in three, up 1.6% at the start of Friday’s session, lifting its year-to-date advance to 35%. Despite persistent macroeconomic headwinds, all sectors are contributing to the recovery, once again led by energy, where natural gas and particularly diesel futures have posted strong gains. Perhaps surprisingly, given how the week has unfolded, precious metals occupy second place, with gold heading for its best weekly performance since early August. Industrial metals are also trading higher, albeit with more modest gains led by copper and zinc. Agriculture is contributing with most grain and soft commodity futures posting small weekly gains, led by soybeans, corn, sugar and cotton.

US wholesale #inflation# accelerated in April to the fastest pace since 2022, driven by surging energy prices. The PPI index rose 6% YoY, while the core measure that excludes food and energy increased 5.2% YoY, the biggest advance in more than three years.