Commodities Daily - May 26, 2020

> Gold prices stable, trading at around $1,730/oz ahead of US data releases. The mood was upbeat in Asian trading this morning. Supporting sentiment were pledges by the BoJ governor of more support to the Japanese economy. Over the course of the day, a number of key US macro releases are due, including new home sales for April, consumer confidence for May, housing prices, the Chicago Fed national activity index and the Dallas Fed manufacturing index. Barring new political developments, we expect gold to continue to hover around the $1,730/oz mark. > Base metals on the rise this morning. Three-month copper forwards have gained 1.7% since the opening, while lead is up 1.3% and nickel has added 0.7%. Easing lockdown measures in certain regions as well as news that China is fulfilling the first phase of its trade deal with the US are boosting demand for risk assets, including industrial metals.GOLD PRICES STABLE, TRADING AT AROUND $1,730/OZ AHEAD OF US DATA RELEASESThe holiday in the US and UK spelled a quiet day in markets yesterday. The gold price saw pretty subdued trading and finished the day having ticked 0.2% lower. With quarantine measures being gradually eased in a number of countries, the mood in markets remains positive, even despite the risks of a further escalation in tension between the US and China. Meanwhile, the growth in new Covid-19 cases globally has fallen off substantially in recent days. In the US, 523 deaths were recorded yesterday, the lowest figure since late March. The encouraging data has not put much of a dent in gold, however. This is because the metal is finding support from the rhetoric of central banks. Today, for example, BoJ Governor Haruhiko Kuroda announced that Japan's economy would remain in a tough position in 2Q20 and that the central bank was prepared to use all available tools to provide relief, including rate cuts and increased lending to corporates. Gold investors will be keeping an eye out for US data releases today: new home sales for April, consumer confidence for May and housing prices, the Chicago Fed national activity index and the Dallas Fed manufacturing index. Barring new political developments, we expect gold to continue to hover around the $1,730/oz mark. SE METALS ON THE RISE THIS MORNINGRising risk appetite this morning boosted industrial metals. Media have reported that Novavax has begun testing a coronavirus vaccine in Australia. Support has also come from news that more and more countries are relaxing their quarantine measures (including Japan today), while global trade is gradually recovering. Chinese trade data for April indicated that US exporters have begun to supply LNG and pork to China, signaling the Chinese side's compliance with the first phase of the trade deal.As we write, 3m copper forwards have gained 1.7% since the opening, while lead is up 1.3% and nickel has added 0.7%