Weekly Commodity Podcast by Ravindra Rao | 28th Aug 2023

Highlights of this week's Commodity Podcast:In a much-anticipated address at the Jackson Hole symposium, Federal Reserve Chair Jerome Powell acknowledged the progress made in mitigating inflation from its peak last yearHe also emphasized that inflation remained "too high," suggesting that interest rates could remain elevated for an extended period, leaving room for additional rate hikesAs expected, Powell highlighted that economic growth and labor market conditions would be closely monitored when making policy decisionsAfter reaching to 2007 highs US Treasury yields retreated following softer-than-expected PMI data, prompting a resurgence in gold prices, which saw a weekly gain for the first time in four weeksCOMEX Silver also closed the week with a notable gain of 6.51%, boosted by rises in both gold and industrial metals, although investment demand in bullion remained subdued. However, strong central bank purchases have consistently supported global gold demand in recent quartersMeanwhile, LME base metals posted decent gains this week, driven by China's efforts to stabilize its local currency and reports of China planning steps to enhance funding for construction and infrastructure projectsConversely, WTI crude oil prices traded below $80 per barrel, marking a second consecutive weekly decline. This decline was influenced by signs of easing supply tightness concerns, improved US relations with sanctioned oil producers Iran and Venezuela, and growing demand risks in China and the USLooking ahead, volatility is expected to persist as the United States gears up for a busy week, with investors closely monitoring the labor report, the PCE price index, ISM Manufacturing PMI, and the second estimate of Q2 GDP growthAdditionally, market attention will be on China's latest rollout of mortgage easing measures aimed at providing relief to the stressed residential property market and whether they meet market expectations