Silver futures plunge 3% after China PMI, Morgan Stanley downgrade

                           Silver futures fell sharply during European morning hours on Tuesday, re-approaching a 30-month low after data showed that manufacturing activity in China expanded at a slower rate in April, underlining concerns over a slowdown in industrial demand for the metal.

Silver prices also struggled due to a stronger U.S. dollar, which makes dollar-priced commodities more expensive to investors holding other currencies. The dollar index was up 0.4% to trade at 88.13, the strongest level since April 4.

On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD22.67 a troy ounce during European morning trade, down 2.8% on the day.

Comex silver prices fell by as much as 3.3% earlier in the session to hit a daily low of USD22.55 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 USD23.69, the previous session’s high.

China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a two-month low of 50.5 in April from a final reading of 51.6 in March.

China is a major metals consumer and manufacturing numbers are often used as indicators for future demand growth.

Prices came under additional pressure after Wall Street investment bank Morgan Stanley cut its 2013 silver price forecast by 19% and its 2014 outlook by 15%.

Silver futures have lost nearly 18%, or almost USD5 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 55% since hitting an all-time high of USD49.81 an ounce in April 2011.

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.
Courtesy : Investing.com

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Crude oil futures fall to session low following dismal German PMI

                    Crude oil futures fell to the lowest level of the session during European morning hours on Tuesday, as investors sold growth-linked assets following the release of disappointing manufacturing data out of Germany.

Germany is a major oil consumer and manufacturing numbers are often used as indicators for future fuel demand growth.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD88.14 a barrel during European morning trade, down 1.2% on the day. 

New York-traded oil fell by as much as 1.3% earlier in the session to hit a daily low of USD88.08 a barrel.

Market research group Markit said that its preliminary euro zone manufacturing purchasing managers’ index fell to a four-month low of 46.5 in April from a final reading of 46.8 in March. 

Meanwhile, Germany’s manufacturing purchasing managers’ index fell to a four-month low of 47.9 in April from a final reading of 49.0 in March. 

The report also showed that service sector activity in Germany expanded at the slowest rate in six months in April, with the services PMI falling to 49.2 from 50.9 in March.

The data came after a report showing that manufacturing activity in China expanded at a slower rate in April, underlining concerns over a slowdown in demand from the world’s second largest oil consumer.

China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a two-month low of 50.5 in April from a final reading of 51.6 in March.

Market players now looked ahead to the release of fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer. 

The American Petroleum Institute will release its inventories report later in the day, while Wednesday’s government report could show crude stockpiles rose by 1.6 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 June delivery declined 0.95% to trade at USD99.44 a barrel, with the spread between the Brent and crude contracts standing at USD11.30 a barrel.

London-traded Brent prices fell to a nine-month low of USD96.76 a barrel on April 18.

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

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Oil inches up as traders ponder U.S. housing data

Mcx Crudeoil Tips @ www.mcxfreetips.com

                 CrudeOil futures traded slightly higher during Tuesday’s Asian session as traders in the region took their turn digesting some mediocre U.S. housing data. 

On the New York Mercantile Exchange, light, sweet crudeOil futures for June delivery nudged up 0.07% to USD89.25 per barrel in Asian trading Tuesday after settling up 0.91% at USD89.07 a barrel on Monday in the U.S. 

Oil fought off the day’s marquee data point. In U.S. economic news, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis. 

Housing is considered an integral sign of economic health in the U.S. and is viewed by many traders as an important sign regarding energy demand. 

Traders will now turn their attention to the HSBC flash reading of China’s purchasing managers index for April due out later Tuesday. China’s March PMI rose to 51.7 from 50.4 in February, but that is below the two-year high seen in January. 

Readings above 50 signal expansion. The U.S. and China are the world’s two largest oil consumers. 

Elsewhere, Libya is petitioning the Organization of the Petroleum Exporting Countries to increase its production quota. Libya’s previous quota was set at 1.47 million barrels per day, but the North African country is currently pumping 1.5 million barrels per day. 

Libya is also planning to offer new exploration concessions. The country is home to Africa’s largest oil reserves. 

Elsewhere, Brent crude for June delivery inched lower by 0.07% to USD100.40 per barrel on the ICE Futures Exchange.
Courtesy : Investing.com

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Gold falls slightly in Asia after jumping in U.S.

Mcx Gold Tips @ www.mcxfreetips.com

           Gold futures are taking a small breather in the early part of Tuesday’s Asian session after the yellow metal ripped higher Monday in the U.S. to extend its winning streak to five days. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.09% to USD1,419.95 per troy ounce in Asian trading Tuesday after settling up 1.94% at USD1,422.65 a troy ounce in U.S. trading on Monday. 

Gold futures were likely to test support USD1,403.55 a troy ounce, the earlier low, and resistance at USD1,590.05, the high from April 9. 

Gold got a lift Monday in the U.S. amid some safe-haven buying following a concerning real estate data point. In U.S. economic news, the National Association of Realtors said existing home sales dropped 0.6% to a seasonally adjusted annual rate of 4.92 million in March from a downwardly revised 4.95 million in February. Economists expected an increase in March, but the number was still higher by 10.3% on a year-over-year basis. 

Risk appetite was limited as Caterpillar, the world’s largest maker of construction and mining equipment, slashed its 2013 earnings and revenue guidance, underscoring the notion that the global economic recovery is still fragile. 

Gold prices have dropped in recent months amid concerns that a more robust recovery in the U.S. will prompt the Federal Reserve to soon wind down stimulus tools, which weaken the dollar to spur investing and recovery. 

Gold is also getting a lift from some increased physical buying. The U.S. Mint has sold 167,500 ounces of gold coins thus far in April, nearly triple the amount it sold all of last month. 

Elsewhere, Comex silver for May delivery fell 0.56% to USD23.193 per ounce while copper for May delivery dropped 0.43% to USD3.118 per ounce.
Courtesy : Investing.com

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