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Copper, gold, oil react to April CPI: Commodities check

Copper futures (HG=F) are in the midst of a short squeeze, making record gains over the past several trading days. Although, copper prices are beginning to slide Wednesday morning. The shortage has caused the precious metal to be rerouted from other regions to the US.

Crude oil prices (BZ=F, CL=F) tick down as the International Energy Agency (IEA) lowered its demand growth forecast for this year, citing weaker gas-oil consumption.

Lastly, gold (GC=F) has surged after the release of April's CPI data this morning, revealing inflation to have come in-line with annual expectations and giving credence to the theory that the Federal Reserve may move towards cutting interest rates.

Yahoo Finance Senior Markets Reporter Jared Blikre joins Morning Brief to break down the latest numbers for these commodities.


For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Nicholas Jacobino

Video transcript

Let's start out with copper because in US listed comma copper, we are in the midst of a short squeeze and you can see we're just at the unchanged line right here.

But let me show you the last five days.

It doesn't look like a lot, but 4% is huge in the highly levered industry of commodities.

Now five is a big psychological number, and I should say there's some arbitrage going on between copper that's deliverable overseas.

It's being rerouted to the US where we have the short squeeze and just by way of a longer term chart, you can really see how this is accelerated to the upside.

So we will keep an eye on that.

And by the way, fundamentals in the macro environment, they favour copper as well.

So let's take a look at crude oil crude oil down a little bit.

We do have, and this is WT here.

This is a one year chart, and here's an intra day.

We do have some news from the IE A.

They just updated their demand forecast for the year still going to be 1.1 an increase of 1.1 million barrels per day, but that's a little bit less than they anticipated.

And let me show you a three month chart with some candlesticks and you can see we are now breaking what was a support line so could could go a bit lower if we get momentum on here now.

I also want to cover gold because gold actually shot up on the announcement and I'm looking for GC.

Equals up.

There we go.

Let me show you the intra day because on that CP I print, we got a nice spurt upwards.

Why is that?

Because the Fed is more likely to cut rates because it came in in line.

So that's the theory.

And that's what happened in gold futures holding above 23.

70 right now.