Natural gas futures drop 2% after U.S. supply data

Natural gas futures tumbled 2% during U.S. morning trade on Thursday, adding to losses after a report from the U.S. Energy Information Administration showed U.S. gas supplies rose less-than-expected last week. On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD2.986 per million British thermal units during U.S. morning trade, tumbling 2.5%. It earlier fell by as much as 3% to trade at a session low of USD2.962 per million British thermal units. The October contract traded at USD3.017 prior to the release of the U.S. Energy Information Administration report. The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 7 rose by 27 billion cubic feet, just below market expectations for an increase of 28 billion cubic feet. Inventories rose by 80 billion cubic feet in the same week a year earlier, while the five-year average change for the week is an increase of 72 billion cubic feet, according to U.S. Energy Department data. Total U.S. natural gas storage stood at 3.429 trillion cubic feet as of last week. Stocks were 342 billion cubic feet higher than last year at this time and 284 billion cubic feet above the five-year average of 3.145 trillion cubic feet for this time of year. Inventory did not top the 3.4-trillion cubic feet level in 2011 until October 5, with stocks peaking at a record 3.852 trillion cubic feet in November of last year. The report showed that in the East Region, stocks were 80 billion cubic feet above the five-year average, following a net injection of 38 billion cubic feet. Stocks in the Producing Region were 147 billion cubic feet above the five-year average of 957 billion cubic feet, after a net withdrawal of 13 billion cubic feet. Market analysts have warned that without strong demand through the rest of the summer cooling season, gas inventories will reach the limits of available capacity later this year. The storage surplus to last year will have to be cut by at least another 150 billion cubic feet in the 12 weeks left before winter withdrawals begin to avoid breaching the government's 4.1 trillion cubic feet estimate of total capacity. Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October rose 1.3% to trade at USD98.24 a barrel, while heating oil for October delivery added 0.3% to trade at USD3.225 per gallon.

Courtesy: ForexPros

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Gold edges higher after jobless claims data; Bernanke in focus

Gold futures edged higher in rangebound trade during U.S. morning hours on Thursday, after data showed the number of people applying for unemployment assistance in the U.S. last week rose more-than-expected. Investors now looked ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the day for more clarity on the central bank’s monetary policy. On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,732.65 a troy ounce during U.S. morning trade, easing up 0.1%. Prices were stuck in a tight trading range of USD1,728.25 a troy ounce, the daily low and a session high of USD1,735.75 a troy ounce. Gold futures rallied to USD1,746.55 a troy ounce on Wednesday, the highest since February 29. Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 6 and near-term resistance at USD1,761.85, the high from February 21. The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000. The previous week’s figure was revised up to 367,000 from a previously reported 365,000. A separate report showed that producer prices in the U.S. rose by a seasonally adjusted 1.7% in August, compared to expectations for a 1.1% increase, after rising 0.3% in July. The data came as markets were eyeing the outcome of the Fed’s policy meeting later Thursday, amid growing speculation that the U.S. central bank may implement a third round of quantitative easing to bolster growth. Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report and following a speech from Fed Chief Ben Bernanke at Jackson Hole last month. Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system. The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation. Elsewhere on the Comex, silver for December delivery shed 0.25% to trade at USD33.20 a troy ounce, while copper for December delivery dipped 0.15% to trade at USD3.686 a pound.

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Crude oil rallies to 4-month high on Middle East violence; Fed eyed

Crude oil futures rallied to the highest level since May during U.S. morning hours on Thursday, as growing concerns over geopolitical risk in the Middle East boosted energy prices. Investors now looked ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the day for more clarity on the central bank’s monetary policy. On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD98.19 a barrel during U.S. morning trade, climbing 1.2%. New York-traded crude futures rose by as much as 1.6% earlier in the day to hit a session high of USD98.58 a barrel, which was the strongest level since May 4. Oil prices spiked higher on news that protesters attempted to storm the U.S. embassy in Yemen. One protester was killed and five injured, according to Al Arabiya television. The protest comes two days after four people were killed in a similar attack on the U.S. embassy in Libya, including the U.S. ambassador. Meanwhile, market players eyed the outcome of the Fed’s two-day policy meeting later Thursday, amid growing speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost sluggish growth in the world’s largest economy. Data released earlier in the day showed that the number of individuals filing for initial jobless benefits in the week ending September 8 rose by 15,000 to a seasonally adjusted 382,000, compared to expectations for an increase of 3,000 to 370,000. The previous week’s figure was revised up to 367,000 from a previously reported 365,000. A separate report showed that producer prices in the U.S. rose by a seasonally adjusted 1.7% in August, compared to expectations for a 1.1% increase, after rising 0.3% in July. The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery added 0.8% to trade at USD116.25 a barrel, with the spread between the Brent and crude contracts standing at USD18.06 a barrel. London-traded Brent prices hit a session high of USD116.86 a barrel earlier, the strongest level since May 3.

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Copper futures edge lower ahead of Fed decision

Copper futures edged lower during European morning hours on Thursday, trading below the previous session’s four-month high as investors looked ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the day for more clarity on the central bank’s monetary policy. On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.685 a pound during European morning trade, shedding 0.2%. Prices were stuck in a tight trading range of USD3.673 a pound, the daily low and a session high of USD3.700 a pound. Copper futures rallied to a four-month high of USD3.731 a pound on Wednesday. Market players eyed the outcome of the Fed’s two-day policy meeting later Thursday, amid growing speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost sluggish growth in the world’s largest economy. Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report and following a speech from Fed Chief Ben Bernanke at Jackson Hole last month. Past monetary stimulus rounds weakened the U.S. dollar, boosting the price of dollar-denominated commodities like copper. Copper prices drew further support from a weaker U.S. dollar. The euro held near a four-month high against the greenback after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism on Wednesday. The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed. The German court said that the country’s liability to the EMS must not exceed EUR190 billion without the approval of the lower house of parliament and said that both houses of parliament must be kept informed about decisions relating to the ESM. Copper traders were also looking to China, amid growing expectations Beijing will introduce further stimulus measures to boost cooling growth in the world's second largest economy. Chinese Premier Wen Jiabao said earlier in the week that the government could utilize a CNY100 billion fiscal stability fund to boost growth if needed. China’s government last week approved a USD157 billion infrastructure spending program to help stimulate the economy. Elsewhere on the Comex, gold for October delivery eased down 0.1% to trade at USD1,729.65 a troy ounce, while silver for December delivery fell 0.65% to trade at USD34.08 a troy ounce.

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Crude oil futures little changed as markets eye Fed

Crude oil futures were little changed during European morning hours on Thursday, as investors stuck to the sidelines ahead of a policy decision by the Federal Reserve later in the day. On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD97.03 a barrel during European morning trade, easing up 0.02%. Prices were stuck in a narrow trading range of USD96.76 a barrel, the daily low and a session high of USD97.14 a barrel. New York-traded crude futures hit a three-week high of USD98.05 a barrel on Wednesday. Market players eyed the outcome of the Fed’s two-day policy meeting later Thursday, amid growing speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost sluggish growth in the world’s largest economy. Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report and following a speech from Fed Chief Ben Bernanke at Jackson Hole last month. Past monetary stimulus rounds weakened the U.S. dollar, boosting the price of dollar-denominated commodities like oil. Oil prices drew further support from a weaker U.S. dollar. The euro held near a four-month high against the greenback after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism on Wednesday. The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed. The German court said that the country’s liability to the EMS must not exceed EUR190 billion without the approval of the lower house of parliament and said that both houses of parliament must be kept informed about decisions relating to the ESM. But prices were weighed by a surprise increase in U.S. oil stockpiles. Weekly data from the U.S. Energy Department on Wednesday showed that crude oil supplies rose by 2 million barrels last week, defying expectations for a decline of 2.6 million barrels. The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery eased down 0.05% to trade at USD115.27 a barrel, with the spread between the Brent and crude contracts standing at USD18.24 a barrel. London-traded Brent prices hit USD115.99 a barrel on Wednesday, drawing support from from reports that militants killed the U.S. ambassador to Libya and three other embassy staff in a rocket attack, refueling concerns over geopolitical risk in the OPEC member.

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Gold holds steady in rangebound trade ahead of Fed announcement

Gold futures were steady in rangebound trade during European morning hours on Thursday, as investors looked ahead to the conclusion of the Federal Reserve’s policy-setting meeting later in the day, amid hopes of further easing. On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,730.15 a troy ounce during European morning trade, easing down 0.05%. Prices were stuck in a tight trading range of USD1,728.85 a troy ounce, the daily low and a session high of USD1,732.95 a troy ounce. Gold futures rallied to USD1,746.55 a troy ounce on Wednesday, the highest since February 29. Gold prices were likely to find support at USD1,688.85 a troy ounce, the low from September 6 and near-term resistance at USD1,761.85, the high from February 21. Markets eyed the outcome of the Fed’s two-day policy meeting later Thursday, amid growing speculation that the U.S. central bank may announce a third round of bond purchases, or quantitative easing, to boost sluggish growth in the world’s largest economy. Market expectations of a QE3 announcement this week increased after last Friday’s weaker-than-expected jobs report and following a speech from Fed Chief Ben Bernanke at Jackson Hole last month. Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system. The precious metal has rallied on past monetary stimulus measures. Investors tend to flock to gold on fears that excess liquidity would erode the value of fiat currencies and spark inflation. The precious metal received an additional lift from a weaker U.S. dollar. The euro remained supported near a four-month high against the greenback after Germany’s constitutional court approved the country’s participation in the euro zone’s bailout fund, the European Stability Mechanism on Wednesday. The ruling cleared the way for Germany’s president to ratify the ESM under certain conditions, allowing the European Central Bank’s bond purchasing program to proceed. The German court said that the country’s liability to the EMS must not exceed EUR190 billion without the approval of the lower house of parliament and said that both houses of parliament must be kept informed about decisions relating to the ESM. Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies. Elsewhere on the Comex, silver for December delivery shed 0.7% to trade at USD33.06 a troy ounce, while copper for December delivery shed 0.35% to trade at USD3.679 a pound.

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Gold gains ahead of much anticipated Fed Reserve announcement

Gold prices rose in Asian trading on Thursday as investors braced for a possible announcement from the Federal Reserve on plans to stimulate the U.S. economy. The Fed concludes a two-day monetary policy meeting later in the day. On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were up 0.06% at USD1,732.15 a troy ounce, up from a session low of USD1,731.15 and down from a high of USD1,732.95 a troy ounce early during the session. Gold futures were likely to test support at USD1,725.25 a troy ounce, Wednesday's low, and resistance at USD1,746.55, Wednesday's high. Weak monthly jobs reports and slow economic growth rates have many betting the Fed will announce a third round of quantitative easing later Thursday. Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to speed up recovery. Such accommodative policies tend to weaken the dollar by design, which sends the greenback's traditional hedge, gold, rising. The metal rose on sentiment the Fed is leaning towards stimulating the economy with easing tools and less towards sticking with its wait-and-see approach used during recent months. Gold also rose on news that a German court okayed the government's participation in eurozone financial rescue activities, ending uncertainty surrounding the European Central Bank's plans to buy sovereign debt. The constitutional court ruling in Germany gives Berlin the green light to ratify the European Stability Mechanism, the continent's bailout fund, which will open the door for the European Central Bank to roll out its sovereign bond purchasing program. Elsewhere on the Comex, silver for December delivery was down 0.05% and trading at USD33.275 a troy ounce, while copper for December delivery was down 0.16% and trading at USD3.691 a pound.

Courtesy: ForexPros

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Today Market View (INTRADAY LEVELS)

13-SEP-2012	RESISTANCE LEVELS	SUPPORT LEVELS

COMMODITY	RES-1	RES-2	RES-3	SUP-1	SUP-2	SUP-3
GOLD	32072	32277	32450	31694	31521	31316
SILVER	64731	66165	67574	61888	60479	59045
COPPER	456.65	460.90	464.85	448.45	444.50	440.25
NICKEL	935.30	949.70	961.10	909.50	898.10	883.70
ZINC	111.40	112.55	113.45	109.35	108.45	107.30
LEAD	117.75	118.95	119.80	115.70	114.85	113.65
ALUMINIUM	114.75	115.50	116.10	113.40	112.75	112.05
CRUDEOIL	5395	5436	5467	5321	5288	5247
NATURAL GAS	170.80	173.00	176.70	164.90	161.20	159.00

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