Gold, silver extend last week’s winning streak

               Gold and silver prices extended gains from last week on Monday, as a mixed U.S. employment report forced investors to recalibrate their assumptions about the future course of the Federal Reserve's monetary policy.

Gold futures ended Friday’s session up 0.45% to settle at USD1,262.90 a troy ounce.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery hit USD1,276.00 a troy ounce, the most since January 27, before trimming gains to trade at USD1,274.60 during European morning hours, up 0.9%.

Prices were likely to find support at USD1,252.20 a troy ounce, the low from February 5 and resistance at USD1,279.20, the high from January 26.

Meanwhile, silver for March delivery rose 1.1% to trade at USD20.15 a troy ounce. The March contract settled 0.04% higher on Friday to end at USD19.93 an ounce.

Silver futures were likely to find support at USD19.75 a troy ounce, the low from February 7 and resistance at USD20.24, the high from February 5.

Data on Friday showed that the U.S. economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.

Market players now looked ahead to Congressional testimony from new Federal Reserve Chair Janet Yellen later in the week for clues regarding the future of course of U.S. monetary policy.

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

Elsewhere on the Comex, copper futures for March delivery rose 0.1% to trade at USD3.239 a pound. - investing.com

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Copper futures little changed near 1-week high

            Copper futures were little changed near a one-week high on Monday, as investors looked ahead to key economic data out of China later in the week to gauge the strength of the world’s second largest economy.

The March copper contract ended Friday’s session up 0.22% to settle at USD3.236 a pound.On the Comex division of the New York Mercantile Exchange, copper futures for March delivery hit USD3.253 a pound, the most since January 20, before trimming gains to trade at USD3.238 a pound during European morning hours, up 0.05%.

Futures were likely to find support at USD3.191 a pound, the low from February 6 and resistance at USD3.258 a pound, the high from January 30.

On Thursday, China will release its monthly trade data, which will be followed by inflation numbers Friday. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Meanwhile, in the U.S., data on Friday showed that the economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.

Market players now looked ahead to Congressional testimony from new Federal Reserve Chair Janet Yellen later in the week for clues regarding the future of course of U.S. monetary policy.

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

Elsewhere on the Comex, gold for April delivery rose 0.8% to trade at USD1,272.90 a troy ounce, while silver for March delivery advanced 1.1% to trade at USD20.15 a troy ounce. - investing.com

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Natural gas futures - weekly outlook: February 10 - 14

              U.S. natural gas futures fell sharply on Friday, as a break in the cold to milder weather prompted a 

correction in the market after a rapid price run-up which took prices to a four-year high earlier in the week.

The March contract tumbled 1.97% on Thursday to settle at USD4.931 per million British thermal units. Prices rallied to USD5.737 on Wednesday, the highest since January 2010.On the New York Mercantile Exchange, natural gas futures for delivery in March slumped to a session low of USD4.739 per million British thermal units, the weakest since January 31, before trimming losses to settle at USD4.775, down 3.16%.

Natural gas futures were likely to find support at USD4.652 per million British thermal units, the low from January 27 and resistance at USD5.018, the high from February 7.

On the week, Nymex natural gas prices lost 3.39%, the second consecutive weekly decline.

Natural gas futures were pressured on Friday after updated weather forecasting models pointed to moderating temperatures that would curb demand for the heating fuel.

Temperatures are expected to warm following the arctic chill that settled through most of the nation during January.

MDA Weather Services said it expects a "more aggressive warm up" in the Midwest by late next week, while a "more substantial warmth" will build over the central U.S. in its 11- to 15-day forecast.

Bearish speculators spent the session betting that milder weather will decrease 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 262 billion cubic feet in the week ended January 31, compared to expectations for a decline of 270 billion cubic feet.

Total U.S. natural gas storage stood at 1.923 trillion cubic feet as of last week, approximately 22% below the five-year average for this time of year and nearly 29% below last year’s unusually high level.

Natural-gas inventories have fallen sharply since November 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.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers reduced their bullish bets in natural gas futures in the week ending February 4.

Net longs totaled 151,338 contracts, down 11.5% from net longs of 171,029 in the previous week.

Elsewhere in the energy complex, light sweet crude oil futures for March delivery settled at USD99.88 a barrel by close of trade on Friday, up 2.39% on the week.

Meanwhile, heating oil for March delivery picked up 1.64% on the week to settle at USD3.048 per gallon by close of trade Friday. - investing.com

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Crude oil futures - weekly outlook: February 10 - 14

         New York-traded crude oil futures rallied more than 2% to trade above USD100-a-barrel for the first time in more than a month on Friday, as a broadly weaker U.S. dollar and strong gains in U.S. equity markets boosted the appeal of the commodity.

On Thursday, Nymex oil prices settled 0.47% higher to end at USD97.84 a barrel.On the New York Mercantile Exchange, light sweet crude futures for delivery in March surged to a daily high of USD100.24 a barrel on Friday, the most since December 30, before trimming gains to settle at USD99.88 a barrel, up 2.09% on the day.

U.S. oil futures were likely to find support at USD97.13 a barrel, the low from February 7 and resistance at USD100.42 a barrel, the high from December 30.

On the week, U.S. crude futures, also known as West Texas Intermediate or WTI, climbed 2.39%, the fourth consecutive weekly gain.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.29% on Friday to settle the week at 80.75, the lowest since January 30.

Dollar-denominated oil futures contracts tend to rise when the dollar falls, as this makes oil cheaper for buyers in other currencies.

Meanwhile, the Dow Jones Industrial Average and the S&P 500 ended more than 1% higher on Friday, due to perceptions that the economy is improving but not fast enough to prompt the Federal Reserve to rush to taper stimulus programs.

U.S. shares and crude oil have traded in tandem for several months, on the belief share prices act as a proxy for economic sentiment and are a bellwether for oil demand.

Data on Friday showed that the U.S. economy added 113,000 jobs in January, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

Yet the report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.

In the week ahead, Fed Chair Janet Yellen is to testify on the central bank’s semiannual monetary policy report in Washington. Her comments will be closely watched.

Monthly supply and demand reports from the U.S. Energy Information Administration, the International Energy Agency and the Organization of the Petroleum Exporting Countries will also be in focus.

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 February 4.

Net longs totaled 275,931 contracts, compared to 260,282 in the preceding week.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery soared 2.22% on Friday to settle the week at USD109.57 a barrel, the highest since January 2.

The March Brent contract picked up 2.89% on the week. Meanwhile, the spread between the Brent and the crude contracts stood at USD9.69 a barrel by close of trade on Friday.

The London-traded Brent contract was boosted amid concerns over declining output from the Buzzard oilfield in the North Sea, which is expected to undergo maintenance in the second quarter this year. - investing.com

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Gold / Silver / Copper futures - weekly outlook: February 10 - 14

       Gold futures ended Friday’s session higher, after disappointing U.S. nonfarm payrolls data reduced concerns over a further reduction in U.S. monetary stimulus.

Comex gold prices ended Thursday’s session little up 0.02% at USD1,257.20 a troy ounce.On the Comex division of the New York Mercantile Exchange, gold futures for April delivery rose to a session high of USD1,272.00 a troy ounce on Friday, before trimming gains to settle at USD1,262.90 by close of trade, up 0.78% on the day and 1.48% higher for the week.

Gold futures were likely to find support at USD1,240.40 a troy ounce, the low from February 3 and resistance at USD1,274.50, the high from February 5.

Meanwhile, silver for March delivery ended Friday’s session up 0.04% to close the week at USD19.93 a troy ounce. On Thursday, silver prices settled 0.62% higher at USD19.92 an ounce.

The March silver futures contract picked up 4.06% on the week, the first weekly gain in three weeks.

The U.S. economy added 113,000 jobs in January, the Labor Department said, well below expectations for jobs growth of 185,000, after December's lackluster gain of 75,000 jobs.

It was the weakest two-month stretch of job creation in three years as inclement weather contributed to a slowdown in hiring.

The unemployment rate inched down to a five-year low of 6.6% from 6.7% in December, while the number of people participating in the labor force edged up to 63.0% from an almost 35-year low of 62.8% last month.

The disappointing data cooled expectations that the Federal Reserve would cut its stimulus program again this month. The central bank said it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

The Fed tapered its monthly asset purchase program by another USD10 billion to USD65 billion a month at its last policy meeting.

In the week ahead, Fed Chair Janet Yellen is to testify on the central bank’s semiannual monetary policy report in Washington. Her comments will be closely watched.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers reduced their bullish bets in gold futures in the week ending February 4.

Net longs totaled 59,408 contracts, compared to 60,672 in the preceding week.

Elsewhere on the Comex, copper for March delivery hit a daily high of USD3.248 a pound on Friday, the most since January 30, before trimming gains to end at USD3.236 a pound, up 0.22%.

Comex copper prices added 1.2% on the week, the first weekly advanced in four weeks. - investing.com

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