Copper falls to 7-week low after China PMI data

           Copper futures fell to a seven-week low on Thursday, after data confirmed a contraction in China’s manufacturing sector and following the Federal Reserve’s decision to taper its monthly bond-buying program by USD10 billion for the second consecutive meeting.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery fell to a session low of USD3.231 a pound, the weakest since December 9, before trimming losses to trade at USD3.235 during European morning hours, down 0.15%. 

The March copper contract settled down 0.38% on Wednesday to end at USD3.240 a pound. Copper futures were likely to find support at USD3.217 a pound, the low from December 6 and resistance at USD3.269 a pound, the high from January 29.

China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January, down from a preliminary reading of 49.6 and compared to 50.5 in December.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Meanwhile, the Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".

The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases.

The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

Market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa. 

Emerging markets economies have been hard hit in recent sessions by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China.

Elsewhere on the Comex, gold for April delivery fell 0.6% to trade at USD1,254.50 a troy ounce, while silver for March delivery declined 0.85% to trade at USD19.39 a troy ounce. - investing.com

Read More

Silver falls to 4-week low after Fed tapers stimulus

             Silver futures fell to a four-week low on Thursday, after the Federal Reserve announced that it will taper its bond-buying program by USD10 billion a month.

On the Comex division of the New York Mercantile Exchange, silver futures for March delivery fell to a session low of USD19.28 a troy ounce, the weakest since December 31, before trimming losses to trade at USD19.39 during European morning hours, down 0.8%.

The March contract settled 0.25% higher on Wednesday to end at USD19.55 an ounce. Silver futures were likely to find support at USD19.13 a troy ounce, the low from December 20 and resistance at USD19.96, the high from January 29.

Meanwhile, gold for April delivery traded at USD1,257.00 a troy ounce, down 0.4%.

The Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".

The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases.

The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

Elsewhere on the Comex, copper futures for March delivery inched up 0.1% to trade at USD3.244 a pound. Copper prices slumped to a seven-week low of USD3.231 a pound earlier after data confirmed a contraction in China’s manufacturing sector.

China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January from a preliminary reading of 49.6 and down from 50.5 in December.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year - Investing.com

.

Read More

WTI oil futures inch higher ahead of U.S. GDP data

                   U.S. oil futures edged higher on Thursday, as investors looked ahead to upcoming U.S. economic data to gauge the strength of the world’s largest oil consuming nation.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded in a range between USD97.35 a barrel and USD97.67 a barrel.

Nymex oil prices were last trading at USD97.59 a barrel during European morning hours, up 0.25%.

WTI oil prices settled 0.05% lower on Wednesday to end at USD97.36 a barrel. Nymex oil futures were likely to find support at USD95.63 a barrel, the low from January 28 and resistance at USD97.80 a barrel, the high from January 24.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

On Wednesday, the Federal Reserve said that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The central bank added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

Oil traders shrugged off data confirming a contraction in China’s manufacturing sector. China’s final HSBC Purchasing Managers Index released earlier fell to a six-month low of 49.5 in January from a preliminary reading of 49.6 and down from 50.5 in December.

Meanwhile, market players continued to monitor liquidity conditions in emerging markets, such as Turkey and South Africa. 

Emerging markets economies have been hard hit in recent sessions by worries over the impact of cuts in Fed stimulus and concerns over a possible slowdown in China.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery inched up 0.1% to trade at USD107.94 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD10.35 a barrel.  -  Investing.com
 
.

Read More

Gold edges lower after Fed tapers by USD10 billion

               Gold prices edged lower on Thursday, after the Federal Reserve announced that it will taper its bond-buying program to USD65 billion a month following its policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery fell to a session low of USD1,255.40 a troy ounce, before trimming losses to trade at USD1,256.90 during European morning hours, down 0.4%.

The April contract rallied 0.94% on Wednesday to settle at USD1,262.20 an ounce as ongoing turbulence in emerging markets saw investors flee riskier assets and move in to safe-havens.

Gold futures were likely to find support at USD1,248.00 a troy ounce, the low from January 28 and resistance at USD1,280.10, the high from January 27.

The Fed said Wednesday that it would reduce its monthly bond buying program by USD10 billion to a total of USD65 billion a month, in a widely anticipated decision.

The U.S. central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".

The Fed left unchanged its statement that interest rates are likely to remain low even after the unemployment rate drops below 6.5%, the threshold at which the central bank has previously said it would start to consider rate increases.

The Fed added it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The U.S. is to publish preliminary data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and data on pending home sales.

Meanwhile, silver for March delivery fell to USD19.28 a troy ounce, the weakest level since December 31, before paring losses to trade at USD19.37 during early European hours. 

Elsewhere on the Comex, copper futures for March delivery fell 0.2% to trade at USD3.235 a pound, the lowest since December 9.

Data released earlier showed that China’s final HSBC Purchasing Managers Index fell to a six-month low of 49.5 in January from a preliminary reading of 49.6 and down from 50.5 in December.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. - Investing.com

Read More

Natural gas futures - weekly outlook: January 27 - 31

                U.S. natural gas futures soared nearly 10% to hit a four-year high on Friday, as frigid temperatures and snowstorms struck from the Midwest to the East Coast for the second time this month, tightening supplies.

On the New York Mercantile Exchange, natural gas futures for delivery in February rallied 9.56% on Friday to settle the week at USD5.182 per million British thermal units. 

Earlier in the day, Nymex gas prices hit a session high of USD5.246 per million British thermal units, the strongest level since June 2010.

The February contract settled Thursday’s session up 0.87% to end at USD4.730 per million British thermal units.

Natural gas futures were likely to find support at USD4.813 per million British thermal units, the low from January 24 and resistance at USD5.246, the high from January 24. 

On the week, Nymex natural gas prices surged 16.5%, the second consecutive weekly gain and the largest increase in nearly three years, after updated weather forecasting models called for fresh blasts of cold air to sweep across the U.S. through the end of January.

The U.S. National Weather Service said that it expected extreme cold conditions to continue in the heavily populated Midwest and Northeast over the next 14-days. 

Bullish speculators spent the session betting that colder weather will increase demand for the heating fuel.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department.

The U.S. Energy Information Administration said Thursday that natural gas supplies dropped by 107 billion cubic feet in the week ended January 17. 

Total U.S. natural gas storage stood at 2.423 trillion cubic feet as of last week, approximately 13% below the five-year average for this time of year.

Natural-gas inventories have fallen by 1.411 trillion cubic feet since November 8 as frigid winter temperatures in the U.S. led households to burn a higher than normal amount of the fuel in furnaces to heat their homes.

Some expect supplies at the end of the winter heating season in March to be at their lowest in six years.

Wall Street investment bank Goldman Sachs lowered its forecast for inventory levels at the end of March to 1.39 trillion cubic feet earlier in the week, driven by the recent “polar vortex.” Goldman had previously estimated U.S. gas inventories at 1.61 trillion by the end of March.

Early withdrawal estimates for this week’s storage data range from 170 billion cubic feet to 239 billion cubic feet, compared to a drop of 191 billion cubic feet during the same week a year earlier.

The five-year average change for the week is a decline of 162 billion cubic feet.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in natural gas futures in the week ending January 21.

Net longs totaled 154,643 contracts, up 17.2% from net longs of 128,072 in the previous week.

Elsewhere in the energy complex, light sweet crude oil futures for March delivery settled at USD96.64 a barrel by close of trade on Friday, up 2.12% on the week. 

Meanwhile, heating oil for February delivery climbed 3.47% on the week to settle at USD3.137 per gallon by close of trade Friday. - investing.com

Read More

Crude oil futures - weekly outlook: January 27 - 31

             New York-traded crude oil futures fell from a three-week high on Friday, as growing concerns over the economic outlook in emerging markets and the impact on future oil demand prospects dampened the appeal of the commodity.

On the New York Mercantile Exchange, light sweet crude futures for delivery in March shed 0.7% on Friday to settle the week at USD96.64 a barrel by close of trade. 

On Thursday, Nymex oil prices hit USD97.84 a barrel, the strongest level since January 3, before trimming gains to end at USD97.32 a barrel, up 0.61%.

U.S. oil futures were likely to find support at USD95.12 a barrel, the low from January 22 and resistance at USD97.84 a barrel, the high from January 23. 

On the week, U.S. crude futures, also known as West Texas Intermediate or WTI, climbed 2.12%, the second consecutive weekly gain.

Weaker U.S. equities and ongoing turbulence in emerging markets prompted investors to move money out of industrial commodities and into safe haven assets. 

U.S. stocks suffered their worst weekly loss since 2011, with the Dow plunging 318 points on Friday. 

Meanwhile, a selloff in emerging markets accelerated, after the Turkish lira fell to the latest in a series of record lows against the dollar. South Africa’s rand, the Russian ruble and the Argentine peso all fell to multi-year lows against the greenback Friday.

Market sentiment was hit by concerns over a slowdown in China after data on Thursday showed that the preliminary reading of the HSBC manufacturing index fell to a six-month low in January.

The Asian nation is the world's second largest oil consumer after the U.S. and has been the engine of strengthening demand.

Despite Friday’s losses, Nymex oil prices posted a weekly gain as the Keystone XL pipeline linking Cushing, Oklahoma, to the U.S. Gulf Coast began making deliveries this week. Flows will rise over the course of the year toward its 700,000-barrel capacity, which should ease bottlenecks that have depressed prices at times.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in oil futures in the week ending January 21.

Gross long oil positions rose by 10,614 contracts to 294,921, while gross short positions increased by 9,833 lots to 64,418. Net longs totaled 230,503 contracts, compared to 229,722 in the preceding week.

In the week ahead, Wednesday’s outcome of the Federal Reserve’s monthly meeting will be in focus amid expectations for a reduction to USD65 billion from the current USD75 billion in the bank’s stimulus program.

The policy-meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over.

In addition, the initial estimate of U.S. fourth quarter gross domestic product is reported on Thursday.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery advanced 0.28% on Friday to settle the week at USD107.88 a barrel. 

The March Brent contract added 1.29% on the week. Meanwhile, the spread between the Brent and the crude contracts stood at USD11.24 a barrel by close of trade on Friday. - investing.com

Read More

Gold / Silver / Copper futures - weekly outlook: January 27 - 31

         Gold futures ended Friday’s session at a nine-week high, as steep losses in U.S. equities and emerging market currencies boosted the safe haven appeal of the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery hit a session high of USD1,273.20 a troy ounce on Friday, the strongest level since November 20, before trimming gains to settle at USD1,264.30, up 0.16%. 

Comex gold prices rallied 1.91% on Thursday to settle at USD1,262.30 a troy ounce as investors fleeing risk in emerging markets saw gold as an attractive venue.

Gold futures were likely to find support at USD1,230.80 a troy ounce, the low from January 23 and near term resistance at USD1,275.70, the high from November 20. 

On the week, the February Comex gold contract added 1.67%, the fifth consecutive weekly increase and the longest run of weekly gains in 16 months.

A broad based selloff in financial markets Friday spurred safe haven demand, prompting investors to move money out of equities and into gold. U.S. stocks suffered their worst week since 2011, with the Dow plunging 318 points on Friday.

Market sentiment was hit by concerns over a slowdown in China after data on Thursday showed that the preliminary reading of the HSBC manufacturing index fell to a six-month low in January.

Meanwhile, a selloff in emerging markets accelerated on Friday, after the Turkish lira fell to the latest in a series of record lows against the dollar. South Africa’s rand, the Russian ruble and the Argentine peso all fell to multi-year lows against the greenback.

Emerging market currencies have been hard hit since the Federal Reserve announced plans last month to begin scaling back its asset purchase program.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers raised their bullish bets in gold futures in the week ending January 21.

Gross long gold positions declined by 179 contracts to 113,823, while gross short positions fell by 255 lots to 70,470. Net longs totaled 43,353 contracts, compared to 43,277 in the preceding week.

In the week ahead, Wednesday’s outcome of the Federal Reserve’s monthly meeting will be in focus amid expectations for a reduction to USD65 billion from the current USD75 billion in the bank’s stimulus program.

The policy-meeting will mark the last for outgoing Fed Chairman Ben Bernanke, as current Vice Chair Janet Yellen prepares to take over.

In addition, the initial estimate of U.S. fourth quarter gross domestic product is reported on Thursday.

Elsewhere on the Comex, silver for March delivery ended Friday’s session down 1.22% to close the week at USD19.76 a troy ounce. The March silver futures contract lost 2.66% on the week. 

Meanwhile, copper for March delivery slumped to a daily low of USD3.260 a pound on Friday, the weakest since December 11, before trimming losses to end at USD3.271 a pound, down 0.43%.

Prices of the industrial metal dropped 1.54% on Thursday to settle at USD3.285 a pound as downbeat manufacturing data out of China fuelled concerns over the strength of the world’s second largest economy and biggest consumer of the industrial metal.

Comex copper prices declined 2.18% on the week. - investing.com

Read More

Gold prices fluctuate in Asia after upbeat U.S. economic data

                 Gold futures fluctuated between small gains and losses on Thursday during Asian trading after an upbeat regional U.S. factory barometer fueled expectations for the Federal Reserve to continue scaling back its USD75 billion monthly bond-buying program, which supports gold by keeping the dollar weak. 

An optimistic take on the global economy by the World Bank, meanwhile, sent investors snapping up stocks, which also came at gold's expense. 

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded up 0.27% at USD1,241.70 a troy ounce during Asian trading. On Wednesday Gold traded between USD1,240.50 and off a high of 1,242.10. 

The February contract settled down at USD1,240.90 on Wednesday. 

Futures were likely to find support at USD1,217.80 a troy ounce, the low from Jan. 8, and resistance at USD1,254.70, Tuesday's high. 

The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December. Analysts were expecting the index to rise to only 3.75.

Elsewhere, U.S. wholesale prices beat expectations and firmed the dollar, which tends to trade inversely with gold. 

The U.S. producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was also up 1.2% from a year earlier. 

Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%. 

The solid data convinced investors that the Federal Reserve will wind down its USD75 billion in monthly bond purchases as the year progresses. 

Bond purchases weaken the dollar by driving down long-term interest rates, and talk of their dismantling tends to strengthen the greenback, thus chipping away at gold's role as a hedge. 

Wednesday's economic indicators were the latest convincing investors that the poor December jobs repor was likely a hiccup on the road to recovery. 

Separately, the World Bank predicted earlier the global economy will expand 3.2% this year, up from a June forecast calling for 3% growth, which sent investors seeking risk-on asset classes favoring stocks over gold. 

Meanwhile, silver for March delivery was up 0.37% and trading at USD20.208 a troy ounce, while copper futures for March delivery were down 0.07% and trading at USD3.352 a pound.
- investing.com

Read More

Crude oil gains on New York factory data, U.S. supply report

                  A robust New York state factory report coupled with relatively bullish U.S. inventory figures sent oil prices gaining on Wednesday on hopes demand may be picking up in the world's largest consumer of crude.


On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD94.64 a barrel during U.S. trading, up 2.00%. New York-traded oil futures hit a session low of USD92.63 a barrel and a high of USD94.72 a barrel.

The March contract settled up 0.84% at USD92.01 a barrel on Tuesday. Nymex oil futures were likely to find support at USD91.65 a barrel, Monday's low, and resistance at USD95.73 a barrel, the high from Jan. 3.

The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December. Analysts were expecting the index to rise to only 3.75.

Elsewhere, U.S. wholesale prices beat expectations and firmed oil prices further by painting a picture of a more robust economy, one that will demand more fuel and energy going forward. 

The U.S. producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was 1.2% higher from a year earlier.

Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%.

Supply data sent prices gaining as well.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 7.66 million barrels in the week ended Jan. 10, well above expectations for a decline of 613,000 barrels. 

Total U.S. crude oil inventories stood at 350.2 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 6.18 million barrels, above expectations for a gain of 2.54 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery were up 0.74% and trading at USD106.38 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD11.74 a barrel. - investing.com

Read More

Natural gas posts fresh gains on expectations for bullish supply report

Natural gas futures rose for a fourth consecutive session on Wednesday amid hopes that Thursday's inventory data will reveal a recent winter storm that froze much of the U.S. has taken its toll on supplies.

On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD4.416 per million British thermal units during U.S. trading, up 1.06%. The commodity hit session high of USD4.431 and a low of USD4.335.

The February contract settled up 2.22% on Tuesday to end at USD4.369 per million British thermal units. Natural gas futures were likely to find support at USD4.119 per million British thermal units, Monday's low, and resistance at USD4.471, the high from Dec. 30.

A recent blast of frigid air sent temperatures falling dangerously low in recent days, and energy markets were betting Wednesday the weather system will reflect in Thursday's supply data.

Early withdrawal estimates for this Thursday’s storage data range from 250 billion cubic feet to 339 billion cubic feet. The five-year average change for the week is a decline of 159 billion cubic feet.

The largest drop on record is a decrease of 285 billion cubic feet in the seven days ended Dec. 13, Energy Information Administration data show.

Natural gas supplies fell by 157 billion cubic feet last week to hit 2.817 trillion cubic feet, approximately 16% below last year's unusually high level and nearly 10% below the five-year average for this time of year.

Meanwhile, updated weather forecasting models continued to predict below-normal temperatures in the week ahead for much of the U.S., which also pressured prices higher. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March were up 1.82% and trading at USD94.47 a barrel, while heating oil for February delivery were up 1.76% and trading at USD2.9880 per gallon. - investing.com

Read More

Copper futures lower after China lending, money supply data

               

Copper futures were lower on Wednesday, after data showed that Chinese bank lending and money supply growth for December came in below expectations, underlining concerns over liquidity levels.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.317 a pound during European morning trade, down 0.6%. Comex copper prices held in a range between USD3.308 a pound and USD3.337 a pound.

The March contract ended Tuesday’s session down 0.31% to settle at USD3.336 a pound. Copper prices were likely to find support at USD3.289 a pound, the low from January 10 and resistance at USD3.350 a pound, the high from January 14.

Official data released earlier showed that Chinese new loans dropped to CNY482.5 billion in December from CNY624.6 billion in November and missed forecasts of CNY600 billion.

The broad M2 money supply rose 13.6% on year in December, compared to growth of 14.2% in November and below forecast for a 14% increase.

Market players looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy. The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region.

Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus.

Data released Tuesday showed that U.S. retail sales rose 0.2% in December, while core retail sales, which excludes auto sales, rose 0.7%.

The upbeat data helped bolster expectations that the economic recovery in the U.S. will continue to deepen this year and offset concerns over last week’s surprising poor nonfarm payrolls report for December.

The central bank is scheduled to meet January 28-29 to review the economy and assess policy. The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.

Elsewhere on the Comex, gold for February delivery fell 0.7% to trade at USD1,236.70 a troy ounce, while silver for March delivery dropped 1.15% to trade at USD20.05 a troy ounce.
- investing.com

Read More

Gold, silver prices under pressure ahead of key U.S. economic data

            Gold and silver prices were under pressure on Wednesday, as market players looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,236.60 a troy ounce during European morning trade, down 0.7%. 

Gold prices held in a range between USD1,235.30 a troy ounce and USD1,244.90 a troy ounce. Futures were likely to find support at USD1,226.60 a troy ounce, the low from January 10 and resistance at USD1,254.90, the high from January 14.

Meanwhile, silver for March delivery dropped 1.1% to trade at USD20.05 a troy ounce. Comex silver prices held in a range between USD20.03 a troy ounce and USD20.26 a troy ounce. Silver futures were likely to find support at USD19.54 a troy ounce, the low from January 10 and resistance at USD20.60, the high from January 14. 

The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region later Wednesday.

Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus.

Data released Tuesday showed that U.S. retail sales rose 0.2% in December, while core retail sales, which excludes auto sales, rose 0.7%.

The upbeat data helped bolster expectations that the economic recovery in the U.S. will continue to deepen this year and offset concerns over last week’s surprising poor nonfarm payrolls report for December.

Fed board members Charles Plosser and Richard Fisher yesterday called for an end to bond buying. The Fed announced its first cut to the USD85 billion in monthly bond purchases in December, citing an improving economy.

The central bank is scheduled to meet January 28-29 to review the economy and assess policy.

Elsewhere on the Comex, copper futures for March delivery fell 0.6% to trade at USD3.317 a pound. 

Copper prices moved lower after data showed that Chinese bank lending and money supply growth for December came in below expectations, underlining concerns over liquidity levels.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. - investing.com

Read More