Tag Archives: US

Gold Heads for Biggest Weekly Gain in Two Years

12 Jul

Federal Reserve Chairman Ben Bernanke said on Wednesday that the overall message from the central bank was that a “highly accommodative policy is needed for the foreseeable future”.

mcx gold

Gold rose for a fifth session on Friday, on track for its biggest weekly gain in nearly two years on easing fears of an early end to US monetary stimulus that as boosted bullion’s appeal as a hedge against inflation.

Fundamentals

Spot gold had climbed 0.1 percent to USD 1,286.21 an ounce by 0016 GMT. It touched close to USD 1,300 on Thursday, its highest in three weeks.

Bullion has gained 5 percent so far this week, on course for its largest weekly climb since October 2011.

Comex gold and silver were also trading near multi-week highs hit on Thursday.

Federal Reserve Chairman Ben Bernanke said on Wednesday that the overall message from the central bank was that a “highly accommodative policy is needed for the foreseeable future”.

Financial markets, which had tumbled after Bernanke said last month that the Fed’s USD 85 billion in monthly bond purchases could be scaled back this year, jumped on Thursday with the Dow and S&P 500 indices hitting all-time closing highs.

Gold, still down nearly 25 percent this year, could face further headwinds as some investors jump to rallying stocks, dumping holdings in gold-backed exchange traded funds.

Investors pulled USD 998.8 million from commodities and precious metals funds, up from withdrawals of USD 92.6 million the prior week, data from Thomson Reuters’ Lipper service showed on Thursday.

Gold traders in India, the world’s biggest buyer of the metal, refrained from fresh purchases as prices climbed to their highest level in more than two weeks.

Market News

The US dollar fell to multi-week lows against the euro and yen on Thursday as traders scaled back expectations the Fed would slow its asset purchases in the coming months.

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Oil edges down to $103/bbl, supply worry eases

9 Jul

NYMEX crude for August delivery was down 16 cents at USD 102.98 a barrel by 0018 GMT, after settling down 8 cents at USD 103.14 on Monday. It touched a 14-month high of USD 104.12 on Monday.

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US crude futures retreated to just below USD 103 a barrel on Tuesday, pressured by the return of a Libyan oilfield and Iraqi pipeline that eased concerns about global oil supplies.

Also Read : checkmatetrades

Fundamentals

NYMEX crude for August delivery was down 16 cents at USD 102.98 a barrel by 0018 GMT, after settling down 8 cents at USD 103.14 on Monday. It touched a 14-month high of USD 104.12 on Monday.

London Brent crude for August delivery was down 34 cents at USD 107.09 a barrel, after settling down 29 cents.

Libya’s major Sharara oilfield will resume operations after an agreement was reached with the armed group that shut it down last month, a senior Libyan oil source said on Monday.

A pipeline from Iraq to the Turkish port of Ceyhan will also resume operations in two to three days following an interruption caused by a leak, two sources in Iraq’s state-run North Oil Company (NOC) said on Monday.

Clashes in Egypt that left at least 51 people dead heightened geopolitical risk, but there has been no impact to ports and shipping through the Suez Canal.

Egypt will hold new parliamentary elections once amendments to its suspended constitution are approved in a referendum, the interim head of state decreed on Monday, setting out a time frame that could see a legislative vote in about six months.

US commercial crude oil stocks likely fell by 3.3 million barrels last week, a Reuters poll showed on Monday. Distillate stocks likely rose by 1.3 million barrels, while gasoline stocks were seen up 1.2 million barrels.

Market News

The Standard & Poor’s 500 Index rose 0.53 percent on Monday, edging closer to its all-time high set in May.

The dollar paused in its rally as investors bought beaten-down currencies such as the Australian dollar on Tuesday, although its broad uptrend is seen intact as the market tries to position for when the US Federal Reserve will start to slow its stimulus.

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Gold jumps 1%, ETFs holdings at three-year low

22 Apr

Gold jumped more than 1 percent on Monday after a rebound above USD 1,400 ignited technical buying, but sentiment was shaky as steady outflows from exchange-traded funds trimmed holdings to their lowest in three years.

The technical outlook for gold, which has plunged more than 15 percent so far this year, is yet to improve although the safe-haven asset could find support from a rush in physical buying in Asia and other parts of the world.

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Gold added USD 13.91 an ounce to USD 1,417.76 by 0212 GMT after rising to as high as USD 1,421, still below Friday’s session-high of around USD 1,424.

Gold posted its biggest-ever daily loss in dollar terms last Monday, shocking veteran investors, who see gold as portfolio protection against inflation and other market risks. Prices sank to around USD 1,321 on April 16, its lowest in more than 2 years.

“The aggressiveness of the fall suggests that we are still in a consolidation rather in a reversal role. For me, the USD 1,435 level is likely to provide resistance,” said Tim Riddell, head of ANZ Global Markets Research, Asia.

“We really need to get back into the USD 1,500s to say that there’s something more substantial taking place. The close above USD 1,400 may have taken the negative pressure out of gold in the near term. A close back below that level will heighten the risks of new lows.”

US gold for June delivery was USD 1,417.60 an ounce, up USD 22.00.

For a 24-hour gold chart analysis: http://graphics.thomsonreuters.com/WT1/20132204100219.jpg

Inflation adjusted gold price timeline (since 1970): http://link.reuters.com/jem47t

Gold demand in China: http://link.reuters.com/bat34t

Gold in currencies: http://link.reuters.com/cyv95s
Gold has failed to react to tension in the Korean peninsula, with its safe-haven appeal dented by expectations the US Federal Reserve will soon end its bullion-friendly bond buying programme, which could ease inflationary pressure.

The precious metal had rallied to an 11-month high in October last year after the Fed announced its third round of aggressive economic stimulus, raising fears the central bank’s money-printing to buy assets would stoke inflation.

Outflows on exchange-traded funds could also indicate that investors were parking their money elsewhere, although last week’s trading data from the Unites States showed that funds had injected new money to gold futures.

Hedge funds and money managers raised their net longs in gold futures and options in the week to April 16, a report by Commodity Futures Trading Commission (CFTC) showed on Friday, as new money entered the market at lower prices.

But holdings of the largest gold-backed exchange-traded-fund, New York’s SPDR Gold Trust, dropped 0.88 percent on Friday from Thursday, while those of the largest silver-backed ETF, New York’s iShares Silver Trust remained unchanged for the same period.

Gold prices have also come under pressure due to Cyprus’ plan to sell excess gold reserves to raise around 400 million euros that led to speculation other indebted euro zone countries could follow suit.

In other markets, bulls drove Japanese shares to nearly five-year highs as yen bears clawed at the symbolic 100 yen/dollar door after the Group of 20 gatherings in Washington all but endorsed the Bank of Japan’s aggressive reflation drive.

Source: http://www.moneycontrol.com/news/commodities/gold-jumps-1-etfs-holdings-at-three-year-low_856467.html