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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Gold futures rally nearly 3% on technical buying spree

Mcx Gold Tips @ www.mcxfreetips.com

                   Gold futures were higher for the fifth consecutive day during U.S. morning hours on Monday, moving further off last week’s 27-month low as a bout of technical buying continued after prices broke above a key resistance level. 

Some bargain buying and indications of mounting physical demand in Asia and the U.S. also contributed to gains.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,427.95 a troy ounce during U.S. morning hours, up 2.3% on the day.

Comex gold prices rose by as much as 3% earlier in the session to hit a daily high of USD1,438.35 a troy ounce, the strongest level since April 15. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16.

Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and near-term resistance at USD1,440.10, the high from March 7, 2011.

Gold's gains accelerated after breaking above a key technical resistance level close to the USD1,420-level and then the USD1,428-level, triggering a flurry of automatic buy orders.

Some bargain buying also contributed to gains, as investors returned to the market to seek cheap valuations amid speculation prices fell too far too fast. Gold futures lost 5.4% last week, the fourth consecutive weekly decline.

Prices of the precious metal are now down almost 25% since hitting an all-time high of USD1,920.80 an ounce in September 2011, sparking fears that gold’s bull run is coming to an end.

Sentiment on the precious metal was dampened amid concerns the Federal Reserve will end its bond-buying program sooner-than-expected.

News that Cyprus was to sell some of its gold reserves to raise funds for its bailout also weighed on sentiment, as it sparked concerns other debt-ridden European governments would be forced to do the same.

The steep decline in gold prices sparked a rush of physical buying from buyers in Asia and the U.S.

The U.S. Mint has sold 167,500 troy ounces of gold coins so far in April, up almost three-fold from the 62,000 troy ounces the Mint had sold in all of March.

Buying interest also improved in top consumers India and China, according to bullion dealers.

Elsewhere on the Comex, silver for May delivery rallied 2.4% to trade at USD23.51 a troy ounce, while copper for May delivery slumped 0.5% to trade at USD3.134 a pound.
Courtesy : Investing.com

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Natural gas futures fall 2.5% on profit-taking, warm weather

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                  Natural gas futures fell sharply during U.S. morning hours on Monday, as investors booked profits from a furious rally that took prices to a 21-month high in the previous session.

Natural gas prices came under additional pressure as weather forecasts pointed to warmer weather in the coming week, which was expected to limit demand for the fuel.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.329per million British thermal units during U.S. morning trade, down 2.45% on the day.       

Nymex natural gas prices fell by as much as 2.75% earlier in the day to hit a session low of USD4.317 per million British thermal units. 

The June contract rose to USD4.428 per million British thermal units on Friday, the strongest level since July 22, 2011. 

Nymex gas prices have risen sharply in recent weeks, gaining almost 35% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market and ease concerns over bloated inventory levels. 

Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week, 32% lower than last year at this time and 4.2% below the five-year average for this time of year. 

Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.

The latest U.S. National Weather Service six-to 10-day forecast issued over the weekend pointed to above-normal temperatures for nearly the entire country.

Gas use usually hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.

Early injection estimates for this week’s storage data range from 24 billion cubic feet to 48 billion cubic feet. 

Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 50 billion cubic feet.

Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June lost 0.6% to trade at USD87.74 a barrel, while heating oil for May delivery dipped 0.1% to trade at USD2.785 per gallon. 
Courtesy : Investing.com

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Silver futures up sharply, track gold prices higher

Mcx Silver Tips @ www.mcxfreetips.com

                    Silver futures rose sharply during European morning hours on Monday, tracking gold prices higher as investors returned to the market to seek cheap valuations following last week’s rout.

On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD23.30 a troy ounce during European morning trade, up 1.5% on the day.

Comex silver prices rose by as much as 2% earlier in the session to hit a daily high of USD23.55 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 USD23.85, the previous session’s high.

Silver futures have lost nearly 16%, or almost USD4.30 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 53% since hitting an all-time high of USD49.81 an ounce in April 2011.

Silver has been on the decline given “weak industrial demand and mixed investor interest,” analysts at Barclays wrote in a research note last week.

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.

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Copper futures re-approach 18-month low on demand concerns

Mcx Copper tips

                  Copper futures were down during European morning hours on Monday, trading close to last week’s 18-month low as global growth concerns continued to weigh on the industrial metal.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.114 a pound during European morning trade, down 1.1% on the day.

New York-traded copper prices fell by as much as 2% earlier in the session to hit a daily low of USD3.083 a pound. Comex copper prices fell to USD3.065 a pound last Thursday, the weakest level since October 20, 2011.

Copper prices have been under heavy selling pressure in recent sessions, as investors exited the market amid worries about the economic outlook in top copper consumers China and the U.S.

Prices of the red metal are down more than 21% since hitting a recent high of USD3.978 a pound hit in February 2012, meeting the standard for a bear market.

The International Monetary Fund cut its 2013 forecast for global growth to 3.3% last week, down from its January projection of 3.5%. 

The growth projection for China was trimmed to 8% from 8.2%, while the growth outlook for the U.S. was lowered to 1.9% from 2%.

The IMF also predicted that the euro zone’s economy will shrink 0.3% in 2013 and grow only 1.1% in 2014. Europe as a region is third in global demand for the industrial metal.

Elsewhere on the Comex, gold for June delivery rallied 1.9% to trade at USD1,422.45 a troy ounce, while silver for May delivery jumped 1.6% to trade at USD23.33 a troy ounce.

Gold and silver futures were higher as investors returned to the market to seek cheap valuations following last week’s rout.
Courtesy : Investing.com

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Gold Climbs On Physical Demand As Speculators Remain Sidelined

Mcx Gold Tips

                         Gold is starting off this week much different than last Monday, when it began its historic plunge after Chinese GDP data missed their mark. This morning gold has regained 25.95 to trade at 1421.55, well under the 1520 price range a week ago. Golddropped its most in 30 years between Monday and Wednesday last week declining almost 200.00 to trade in the upper 1300 range.

Gold is climbing more on pent up physical buying as lower prices come as buyers had remained away from the markets due to the high price. The demand is also generated during the year-end for the festivals like ‘Akshya Tritiya’ and ‘Diwali’. Gold coins and jewelry as selling at historic levels, with the mint running out of inventory. Investors though remain out of the markets. The slump in bullion had come at a time when the Indian markets were witnessing a higher demand for the ongoing marriage season. Gold is bought during festivals and marriages, with the main festival season starting from August to October.

Gold in world markets had slumped the most since 1983 on April 15, by losing nearly 10 per cent on speculations that Cyprus might lead other European countries in selling the metal from reserves to revive the economy.

The precious metal jumped more than 1% on Monday after a rebound above $1,400 ignited technical buying, but sentiment was shaky as steady outflows from exchange-traded funds trimmed holdings to their lowest in three years. The technical outlook for gold, which has plunged more than 15% so far this year, is yet to improve although the safe-haven asset could find support from a rush in physical buying in Asia and other parts of the world.

Gold has failed to react to tension in the Korean peninsula, with its safe-haven appeal dented by expectations the US Federal Reserve will soon end its bullion-friendly bond buying programme, which could ease inflationary pressure.

The precious metal had rallied to an 11-month high in October last year after the Fed announced its third round of aggressive economic stimulus, raising fears the central bank’s money-printing to buy assets would stoke inflation.

Outflows on exchange-traded funds could also indicate that investors were parking their money elsewhere, although last week’s trading data from the Unites States showed that funds had injected new money to gold futures. Gold holdings of SPDR gold trust, the largest  ETF backed by the precious metal, declined to 1,123.06 tons, as on April 19.Silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 10,451.01 tons, as on April 15. Silver is following cues from gold this morning to add almost 50 cents trading at 23.455. Courtesy : FxEmpire

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Natural gas futures - Weekly outlook: April 22 - 26 (investing.com)

Mcx Natural gas Tips

                  Natural gas futures ended Friday’s session close to the highest level since July 2011, as sentiment on the commodity remained upbeat amid easing concerns over U.S. inventory levels.

Prices drew additional support after weather forecasters continued to point to cold weather in the Northeast and below-normal weather in parts of the Midwest in the coming week.

On the New York Mercantile Exchange, natural gas futures for delivery in May dipped 0.3% on Friday to settle the week at USD4.397 per million British thermal units.

On the week, the May contract added 3.1%, the ninth consecutive weekly advance. The May natural gas contract is due to expire at the end of trading on Friday, April 26.

Meanwhile, the more actively traded contract for June delivery ended Friday’s session up 0.7% to hit USD4.437 per million British thermal units, the strongest level since July 22, 2011.

On Thursday, the U.S. Energy Information Administration said that natural gas storage rose by 31 billion cubic feet last week, compared to expectations for an increase of 34 billion cubic feet.

It was the season's first injection, which came about three weeks later than usual. 

Inventories increased by 21 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 39 billion cubic feet.

Total U.S. natural gas storage stood at 1.704 trillion cubic feet as of last week, 32% lower than last year at this time and 4.2% below the five-year average for this time of year. 

Early injection estimates for this week’s storage data range from 24 billion cubic feet to 48 billion cubic feet. 

Inventories rose by 43 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a rise of 50 billion cubic feet.

Typically this time of year, stockpiles begin to climb as milder spring temperatures curb demand for natural gas. 

Nymex gas prices have risen sharply in recent weeks, gaining almost 40% since mid-February, boosted by calls for colder temperatures in major consuming regions across the U.S. that helped tighten the market.

Still, some analysts have warned that further gains may be limited with spring's low-demand shoulder season looming.

The heating season from November through March is the peak demand period for U.S. gas consumption. Nearly 50% of all U.S. households use gas for heating.

Gas use usually hits a seasonal low with spring's mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning.

Elsewhere in the energy complex, light sweet crude oil futures for June delivery settled at USD88.23 a barrel by close of trade on Friday, losing 3.1% on the week. 

Meanwhile, heating oil for May delivery dropped 2.6% over the week to settle at USD2.791 per gallon by close of trade Friday.

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