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

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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

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WTI oil futures inch higher ahead of weekly supply data

              U.S. oil futures inched higher in rangebound trade on Wednesday, as investors looked ahead to key U.S. weekly supply data due later in the day to gauge the strength of oil demand from the world’s largest consumer.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD92.94 a barrel during European morning trade, up 0.2%. New York-traded oil futures held in a tight range between USD92.63 a barrel and USD93.03 a barrel.

The March contract settled 0.84% higher on Tuesday to end at USD92.78 a barrel as upbeat December retail sales data helped offset concerns about the U.S. economy following Friday's weak jobs report.

Nymex oil futures were likely to find support at USD91.65 a barrel, the low from January 13 and resistance at USD93.56 a barrel, the high from January 10. 

Wednesday’s government report was expected to show that crude oil stockpiles fell by 0.6 million barrels last week, while gasoline inventories were forecast to increase by 2.6 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 4.14 million barrels in the week ended January 10, compared to expectations for a decline of 1.6 million barrels.

The data also showed that gasoline stockpiles increased by 5.36 million barrels, above expectations for a gain of 2 million barrels.

Investors also 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.

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

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery inched down 0.15% to trade at USD105.45 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD12.51 a barrel.

London-traded Brent prices have been under pressure in recent sessions as the prospect of a rise in Iranian oil exports weighed. - investing.com

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Gold edges lower after World Bank raises global growth forecast

                 Gold prices were lower on Wednesday, after the World Bank upgraded its global economic growth forecasts.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,239.60 a troy ounce during European morning trade, down 0.45%. Gold prices held in a range between USD1,238.00 a troy ounce and USD1,244.90 a troy ounce.

The February contract settled 0.46% lower on Tuesday to end at USD1,245.40 a troy ounce as upbeat December retail sales data helped offset concerns about the U.S. economy following Friday's weak jobs report.

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 declined 0.9% to trade at USD20.10 a troy ounce. The March contract ended Tuesday’s session with a loss of 0.51% to settle at USD20.28 a troy ounce.

In its bi-annual Global Economic Prospects report released earlier, the World Bank said that global growth is set to accelerate 3.2% this year, compared with a June projection of 3% and up from 2.4% in 2013.

The forecast for developed nations was raised to 2.2% from 2%, citing improved outlooks for both the U.S. and the euro zone.

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. 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 0.75% to trade at USD3.312 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

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