Gold futures rally nearly 3% on technical buying spree

Mcx Gold Tips @ www.mcxfreetips.com

                   Gold futures were higher for the fifth consecutive day during U.S. morning hours on Monday, moving further off last week’s 27-month low as a bout of technical buying continued after prices broke above a key resistance level. 

Some bargain buying and indications of mounting physical demand in Asia and the U.S. also contributed to gains.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,427.95 a troy ounce during U.S. morning hours, up 2.3% on the day.

Comex gold prices rose by as much as 3% earlier in the session to hit a daily high of USD1,438.35 a troy ounce, the strongest level since April 15. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16.

Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and near-term resistance at USD1,440.10, the high from March 7, 2011.

Gold's gains accelerated after breaking above a key technical resistance level close to the USD1,420-level and then the USD1,428-level, triggering a flurry of automatic buy orders.

Some bargain buying also contributed to gains, as investors returned to the market to seek cheap valuations amid speculation prices fell too far too fast. Gold futures lost 5.4% last week, the fourth consecutive weekly decline.

Prices of the precious metal are now down almost 25% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.

Sentiment on the precious metal was dampened amid concerns the Federal Reserve will end its bond-buying program sooner-than-expected.

News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.

The steep decline in gold prices sparked a rush of physical buying from buyers in Asia and the U.S.

The U.S. Mint has sold 167,500 troy ounces of gold coins so far in April, up almost three-fold from the 62,000 troy ounces the Mint had sold in all of March.

Buying interest also improved in top consumers India and China, according to bullion dealers.

Elsewhere on the Comex, silver for May delivery rallied 2.4% to trade at USD23.51 a troy ounce, while copper for May delivery slumped 0.5% to trade at USD3.134 a pound.
Courtesy : Investing.com

Read More

Natural gas futures fall 2.5% on profit-taking, warm weather

www.mcxfreetips.com

                  Natural gas futures fell sharply during U.S. morning hours on Monday, as investors booked profits from a furious rally that took prices to a 21-month high in the previous session.

Natural gas prices came under additional pressure as weather forecasts pointed to warmer weather in the coming week, which was expected to limit demand for the fuel.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.329per million British thermal units during U.S. morning trade, down 2.45% on the day.       

Nymex natural gas prices fell by as much as 2.75% earlier in the day to hit a session low of USD4.317 per million British thermal units. 

The June contract rose to USD4.428 per million British thermal units on Friday, the strongest level since July 22, 2011. 

Nymex gas prices have risen sharply in recent weeks, gaining almost 35% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market and ease concerns over bloated inventory levels. 

Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week, 32% lower than last year at this time and 4.2% below the five-year average for this time of year. 

Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.

The latest U.S. National Weather Service six-to 10-day forecast issued over the weekend pointed to above-normal temperatures for nearly the entire country.

Gas use usually hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.

Early injection estimates for this week’s storage data range from 24 billion cubic feet to 48 billion cubic feet. 

Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 50 billion cubic feet.

Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June lost 0.6% to trade at USD87.74 a barrel, while heating oil for May delivery dipped 0.1% to trade at USD2.785 per gallon. 
Courtesy : Investing.com

Read More

Silver futures up sharply, track gold prices higher

Mcx Silver Tips @ www.mcxfreetips.com

                    Silver futures rose sharply during European morning hours on Monday, tracking gold prices higher as investors returned to the market to seek cheap valuations following last week’s rout.

On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD23.30 a troy ounce during European morning trade, up 1.5% on the day.

Comex silver prices rose by as much as 2% earlier in the session to hit a daily high of USD23.55 a troy ounce. Prices fell to a 30-month low of USD22.01 a troy ounce on April 16.

Silver prices were likely to find support at USD22.03 a troy ounce, the low from April 16 and near-term resistance at USD23.85, the previous session’s high.

Silver futures have lost nearly 16%, or almost USD4.30 per ounce, since April 12, as investors exited the market after prices broke below key support levels. 

Prices of the silver metal are down nearly 53% since hitting an all-time high of USD49.81 an ounce in April 2011.

Silver has been on the decline given “weak industrial demand and mixed investor interest,” analysts at Barclays wrote in a research note last week.

Market analysts have warned that a drop below the USD22.00-level can lead to further losses in the near-term.

Elsewhere on the Comex, gold for June delivery rose 1.9% to trade at USD1,422.45 a troy ounce, while copper for May delivery dropped 1.4% to trade at USD3.105 a pound.

Read More

Copper futures re-approach 18-month low on demand concerns

Mcx Copper tips

                  Copper futures were down during European morning hours on Monday, trading close to last week’s 18-month low as global growth concerns continued to weigh on the industrial metal.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.114 a pound during European morning trade, down 1.1% on the day.

New York-traded copper prices fell by as much as 2% earlier in the session to hit a daily low of USD3.083 a pound. Comex copper prices fell to USD3.065 a pound last Thursday, the weakest level since October 20, 2011.

Copper prices have been under heavy selling pressure in recent sessions, as investors exited the market amid worries about the economic outlook in top copper consumers China and the U.S.

Prices of the red metal are down more than 21% since hitting a recent high of USD3.978 a pound hit in February 2012, meeting the standard for a bear market.

The International Monetary Fund cut its 2013 forecast for global growth to 3.3% last week, down from its January projection of 3.5%. 

The growth projection for China was trimmed to 8% from 8.2%, while the growth outlook for the U.S. was lowered to 1.9% from 2%.

The IMF also predicted that the euro zone’s economy will shrink 0.3% in 2013 and grow only 1.1% in 2014. Europe as a region is third in global demand for the industrial metal.

Elsewhere on the Comex, gold for June delivery rallied 1.9% to trade at USD1,422.45 a troy ounce, while silver for May delivery jumped 1.6% to trade at USD23.33 a troy ounce.

Gold and silver futures were higher as investors returned to the market to seek cheap valuations following last week’s rout.
Courtesy : Investing.com

Read More

Gold Climbs On Physical Demand As Speculators Remain Sidelined

Mcx Gold Tips

                         Gold is starting off this week much different than last Monday, when it began its historic plunge after Chinese GDP data missed their mark. This morning gold has regained 25.95 to trade at 1421.55, well under the 1520 price range a week ago. Golddropped its most in 30 years between Monday and Wednesday last week declining almost 200.00 to trade in the upper 1300 range.

Gold is climbing more on pent up physical buying as lower prices come as buyers had remained away from the markets due to the high price. The demand is also generated during the year-end for the festivals like ‘Akshya Tritiya’ and ‘Diwali’. Gold coins and jewelry as selling at historic levels, with the mint running out of inventory. Investors though remain out of the markets. The slump in bullion had come at a time when the Indian markets were witnessing a higher demand for the ongoing marriage season. Gold is bought during festivals and marriages, with the main festival season starting from August to October.

Gold in world markets had slumped the most since 1983 on April 15, by losing nearly 10 per cent on speculations that Cyprus might lead other European countries in selling the metal from reserves to revive the economy.

The precious metal jumped more than 1% on Monday after a rebound above $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% 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.

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. Gold holdings of SPDR gold trust, the largest  ETF backed by the precious metal, declined to 1,123.06 tons, as on April 19.Silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 10,451.01 tons, as on April 15. Silver is following cues from gold this morning to add almost 50 cents trading at 23.455. Courtesy : FxEmpire

Read More

Natural gas futures - Weekly outlook: April 22 - 26 (investing.com)

Mcx Natural gas Tips

                  Natural gas futures ended Friday’s session close to the highest level since July 2011, as sentiment on the commodity remained upbeat amid easing concerns over U.S. inventory levels.

Prices drew additional support after weather forecasters continued to point to cold weather in the Northeast and below-normal weather in parts of the Midwest in the coming week.

On the New York Mercantile Exchange, natural gas futures for delivery in May dipped 0.3% on Friday to settle the week at USD4.397 per million British thermal units.

On the week, the May contract added 3.1%, the ninth consecutive weekly advance. The May natural gas contract is due to expire at the end of trading on Friday, April 26.

Meanwhile, the more actively traded contract for June delivery ended Friday’s session up 0.7% to hit USD4.437 per million British thermal units, the strongest level since July 22, 2011.

On Thursday, the U.S. Energy Information Administration said that natural gas storage rose by 31 billion cubic feet last week, compared to expectations for an increase of 34 billion cubic feet.

It was the season's first injection, which came about three weeks later than usual. 

Inventories increased by 21 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 39 billion cubic feet.

Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week, 32% lower than last year at this time and 4.2% below the five-year average for this time of year. 

Early injection estimates for this week’s storage data range from 24 billion cubic feet to 48 billion cubic feet. 

Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 50 billion cubic feet.

Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas. 

Nymex gas prices have risen sharply in recent weeks, gaining almost 40% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.

Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.

The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.

Gas use usually hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

Elsewhere in the energy complex, light sweet crude oil futures for June delivery settled at USD88.23 a barrel by close of trade on Friday, losing 3.1% on the week. 

Meanwhile, heating oil for May delivery dropped 2.6% over the week to settle at USD2.791 per gallon by close of trade Friday.

Read More

Crude oil futures - Weekly outlook: April 22 - 26 (investing.com)

                     New York-traded crude oil futures ended Friday’s session modestly higher, following sharp losses earlier in the week, as investors returned to the market to seek bargains after energy prices fell to the lowest level since December on Thursday.

On the New York Mercantile Exchange, light sweet crude futures for delivery in May added 0.2% Friday to settle the week at USD87.95 a barrel by close of trade. 

On the week, the May contract lost 3.15%, the third consecutive weekly decline. The May crude contract is due to expire at the end of trading on Monday, April 22.

Meanwhile, the more actively traded contract for June delivery ended Friday’s session at USD88.23 a barrel, easing up 0.25%. On Thursday, the June contract fell to a four-month low of USD85.92 a barrel.

Oil prices have been under heavy selling pressure in recent sessions, as investors exited the market amid concerns over the global economic outlook and its impact on future oil demand.

Nymex oil prices have lost nearly 7%, or almost USD6.50 per barrel, since April 11.

Worries over the global economy intensified earlier in the week after the International Monetary Fund cut its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5%. 

The growth projection for China was trimmed to 8% from 8.2%, while the growth outlook for the U.S. was lowered to 1.9% from 2%.

The U.S. and China are the world’s two largest oil consuming nations.

In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth amid lingering concerns that the U.S. economic recovery is losing momentum.

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 in London, Brent oil futures for June delivery added 0.4% on Friday to settle the week at USD99.50 a barrel, amid speculation the Organization of the Petroleum Exporting Countries will cut oil production quotas in response to the recent slump in prices.

On Thursday, Brent prices fell to a low of USD96.76 a barrel, the weakest level since July 2.

The London-traded Brent contract lost 3.1% over the week, while the spread between the Brent and the crude contracts stood at USD11.27 a barrel.

The European benchmark has been under heavy selling pressure in recent sessions, amid growing concerns over the euro zone’s economic outlook. 

The IMF said earlier in the week that the euro zone remains the weakest part of the global economy. The 17 countries using the euro accounted for about 12% of world demand last year.

Read More

Gold / Silver / Copper futures - Weekly outlook: April 22 - 26 (investing.com)

          Gold futures ended Friday’s session higher, as investors returned to the market to seek cheap valuations amid speculation prices fell too far too fast.

Reports of mounting physical demand in Asia and the U.S. also contributed to gains.

Gold futures plunged to the lowest level since January 2011 earlier in the week as a bout of technical selling kicked in after prices broke below key support levels.  

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.8% on Friday to settle the week at USD1,403.35 a troy ounce.

Earlier in the session, Comex gold rose to a session high of USD1,424.55 a troy ounce, but prices failed to hold on to those gains as sentiment on the precious metal remains bearish. 

Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and a 27-month low and near-term resistance at USD1,425.55, Friday’s high.

Despite Friday’s upbeat performance, gold futures lost 5.4% on the week, the fourth consecutive weekly decline.

Prices of the precious metal are now down almost 26% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.

Sentiment on the precious metal has been bearish amid speculation the Federal Reserve could end its bond-buying program sooner-than-expected and following a sell recommendation from Goldman Sachs earlier in the month. 

News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.

In the week ahead, investors will be awaiting Friday’s U.S. data on first quarter growth. Investors will be closely watching this data as they attempt to gauge the strength of the U.S. recovery. 

Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank could bring quantitative easing, one of the biggest boosts to gold’s bull run, to an end this year.

Elsewhere on the Comex, silver for May delivery shed 0.2% on Friday to settle the week at USD23.19 a troy ounce. Silver future prices lost 10.5% on the week, the sixth consecutive weekly decline and the biggest since September 2011. 

Comex silver fell to USD22.01 a troy ounce on April 16, the lowest since October 5, 2010. 

Silver has been on the decline given “weak industrial demand and mixed investor interest,” analysts at Barclays wrote in a research note earlier in the month.

Meanwhile, copper for May delivery tumbled 1.7% on Friday to close the week at USD3.150 a pound. On the week, Comex copper prices retreated 5.5%. 

Comex copper prices plunged to USD3.065 a pound on Thursday, the weakest level since October 20, 2011. 

Prices of the red metal are down more than 20% since hitting a recent high of USD3.978 a pound hit in February 2012, meeting the standard for a bear market.

Copper futures have been under heavy selling pressure in recent sessions as global growth concerns and worries over a slowdown in demand weighed heavily on the industrial metal.

Read More