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

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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

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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

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