Barrick cuts 2013 Gold,Silver price assumptions

           Canada based Barrick Gold, one of the world’s top gold miners by market capitalization, has reduced its key price assumptions for gold, copper and silver in 2013 due to lower than expected prices in Q1 and the downside trend that followed in April.

The price of gold and copper are the main drivers of Barrick's profitability and cash flow, while the silver price is relevant for the economics of its Pascua Lama project on the Chilean-Argentine border.

Gold production fell 4.5% to 1.797 million ounces, while gold sales remained essentially flat at 1.747 million.

Barrick produced 1.80Moz of gold in Q1 at all-in sustaining and had total cash costs of $919/oz and $561/oz, respectively.

Full year gold production guidance is 7.0M-7.4Moz at total cash costs of $610-$660/oz. Full year all-in sustaining cost guidance has been reduced to $950-$1,050/oz from the previous guidance of $1,000-1,100/oz, Barrick said in its results report.

Barrick originally set a gold price forecast of $1,700/oz for this year. The new estimate sees gold averaging $1,450/oz in 2013.

Although silver prices do not significantly impact Barrick's operating earnings, cash flows or gold total cash costs, they will have "a significant impact on the overall economics" of the Pascua Lama project, which is to produce 35Moz of silver in its first five years.

Barrick was expecting an average silver price of $32/oz in 2013 but has lowered the forecast to $24/oz.

Silver averaged $30.11/oz in Q1 but April has seen a steady drop in price. Silver closed at $22.91/oz on Wednesday.

Barrick has hedge protection on 65Moz of silver from 2013-18, inclusive, with an average floor price of $23/oz and an average ceiling price of $53/oz.

Courtesy : Bullionstreet

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Gold drops on profit taking as rally on physical demand wanes

                                Gold prices fell in U.S. trading on Friday after investors locked in gains and sold for profits.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.56% at USD1,453.75 a troy ounce in U.S. trading on Friday, up from a session low of USD1,448.05 and down from a high of USD1,484.75 a troy ounce.

Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,484.75, the earlier high.

Reports of increased physical demand for gold in Asia as well talk of rising demand from central banks pushed up gold prices earlier until investors sold the metal for profits.

U.S. data also hiked up gold prices before profit taking kicked in.

In the U.S. earlier, the Bureau of Economic Analysis revealed in a preliminary report that the U.S. gross domestic product rose 2.5% in the first quarter, missing expectations for a 3.0% increase though an improvement from a 0.4% rise in the previous quarter. 

The news weakened the dollar by fueling sentiments that the Federal Reserve's monetary stimulus programs will stay in place for longer than expected.

Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the greenback to spur recovery, which makes gold an attractive hedge.

Elsewhere, the Thomson Reuters/University of Michigan's consumer sentiment index rose to 76.4 in April, from a reading of 72.3 the previous month, beating expectations for an increase to 73.2.

Elsewhere on the Comex, silver for May delivery was down 1.40% at USD23.803 a troy ounce, while copper for May delivery was down 1.84% and trading at USD3.178 a pound.
Courtesy : Investing.com

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Crude Oil inches up on inventories data

Mcx Energy Tips @ www.mcxfreetips.com

                            Crude Oil futures inched higher in the early part of Thursday’s Asian trade, buoyed by some supportive inventories data published during Wednesday’s U.S. session. 

On the New York Mercantile Exchange, light, sweet crude futures for June delivery nudged higher by 0.07% to USD91.50 per barrel in Asian trading Thursday after settling up 2.07% at USD91.03 a barrel on Wednesday in the U.S. 

On Wednesday, the U.S. Energy Information Administration said that U.S. crude oil inventories rose by 947,000 barrels last week, well below market calls for a gain of 1.513 million barrels, which sparked a rally in energy markets.

Oil inventories fell by 1.233 million barrels during the week before last. Gasoline inventories, meanwhile, fell by 3.928 million barrels compared with a decline of 633,000 barrels in the preceding week. Analysts were expecting U.S. gasoline inventories to fall 175,000. 

The inventories data helped traders overlook some concerning economic data. In U.S. economic news, the Commerce Department said durable goods orders fell 5.7% last month following a 4.3% increase in February. Orders excluding non-defense aircraft rose 0.2% missing economists’ expectations for 0.4% increase. Shipments of core capital goods rose 0.3% in March, but the February reading was revised lower to an increase of 1.2% from an initial reading of 1.9%. 

In Europe, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March. Analysts had expected the index to tick down to 106.2. 

Germany is the euro zone’s largest economy and the week Ifo index reading prompted speculation that the European Central Bank could lower interest rates at its next monetary policy meeting on May 2. 

Meanwhile, Brent futures for June delivery inched lower by 0.01% to USD101.83 per barrel on the ICE Futures Exchange.
Courtesy : Investing.com

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Gold rises in Asia on physical buying

Mcx Gold Tips @ www.mcxfreetips.com

                        Gold futures traded higher in the early part of Thursday’s Asian session, supported by a strong performance during Wednesday’s U.S. and speculation that physical buying remains robust in various parts of the world. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.23% to USD1,426.95 per troy ounce in Asian trading Thursday after setting up 1.03% at USD1,423.25 a troy ounce in U.S. trading on Wednesday. 

Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high. 

A batch of concerning economic data points out Wednesday sent traders scurrying for safe-haven plays and gold fit the bill, for one day at least. 

In U.S. economic news, the Commerce Department said durable goods orders fell 5.7% last month following a 4.3% increase in February. Orders excluding non-defense aircraft rose 0.2% missing economists’ expectations for 0.4% increase. Shipments of core capital goods rose 0.3% in March, but the February reading was revised lower to an increase of 1.2% from an initial reading of 1.9%. 

In Europe, the Ifo index of German business climate fell to a four-month low of 104.4 in April from 106.7 in March. Analysts had expected the index to tick down to 106.2. Germany is the euro zone’s largest economy and the week Ifo index reading prompted speculation that the European Central Bank could lower interest rates at its next monetary policy meeting on May 2. 

Still, outflows at gold exchange-traded-funds continue. The SPDR Gold Shares, the world’s largest gold-backed ETF, saw holdings decrease 0.68% to 1,097.19 tons on Tuesday. 

Meanwhile, Comex silver for May delivery jumped 0.95% to USD23.050 per ounce while copper for May delivery fell 0.22% to USD3.161 per ounce.
Courtesy : Investing.com

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Natural Gas drops as forecasts point to warming trend across U.S.

                           Natural gas futures dropped in U.S. trading on Wednesday after updated weather forecasting services pointed to warmer temperatures setting in for much of the country.

On the New York Mercantile Exchange, natural gas futures for delivery in June traded at USD4.226 per million British thermal units, down 1.20%.

Forecasts for seasonably warm temperatures gripping much of the country sent prices falling, as warmer weather cuts into demand for heating in the nation's businesses and homes.

Prices have remained high in recent weeks due to below-normal temperatures remaining in place for much of March and early April.

Trading was a little edgy, as investors began to bet on when hotter temperatures will arrive, which will hike demand for air conditioning across the U.S. and send natural gas prices rising anew.

Natural gas prices are very sensitive to weather reports, as about half of the country relies on the commodity for heating. 

Investors were also bracing for Thursday's supply data.

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 with the arrival of warmer spring temperatures. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in June were up 2.44% and trading at USD91.36 a barrel, mainly due to reports that U.S. stockpiles rose less than expected last week, while heating oil futures for May delivery were up 1.02% at USD2.8403 per gallon.
Courtesy : Investing.com

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Copper rebounds from 18-month low on bargain buying, Goldman upgrade

mcx copper tips @ www.mcxfreetips.com

                     Copper futures were up nearly 3% on Wednesday, as investors returned to the market to seek cheap valuations following the previous session’s plunge to the lowest level since October 2011.

Copper prices found further support after Wall Street investment bank Goldman Sachs said they expect prices of the industrial metal to rebound in the near-term.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.162 a pound during European morning trade, up 2.3% on the day.

New York-traded copper prices rose by as much as 3% earlier in the session to hit a daily high of USD3.188 a pound.

In a report published earlier in the day, Goldman Sachs analysts said they expect a rebound in copper prices over the next three months, after it underperformed other metals the past month. 

"An improvement in sentiment towards demand, with the backdrop of reasonable copper price fundamentals in the near term should see prices move higher, especially in the context of significant short positioning in the market at present," they said in a note.

On Tuesday, copper futures fell 1.4% to hit a low of USD3.059 a pound, the weakest level since October 20, 2011, after data showed that manufacturing activity in China expanded at a slower rate in April.

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

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 23% since hitting a recent high of USD3.978 a pound hit in February 2012, meeting the standard for a bear market.

Elsewhere on the Comex, gold for June delivery rallied 1.1% to trade at USD1,424.85 a troy ounce, while silver for May delivery rose 0.9% to trade at USD23.02 a troy ounce. Courtesy : Investing.com

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Crude Oil inches up after API data

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                       CrudeOil futures rose slightly in the early part of Wednesday’s Asian session after the American Petroleum Institute said U.S. crude stockpiles surprisingly fell last week. 

On the New York Mercantile Exchange, light, sweet crude futures for June delivery rose 0.15% to USD89.31 per barrel in Asian trading Wednesday after settling down down 0.11% at USD89.09 a barrel on Tuesday in the U.S. A batch of concerning global economic data weighed on crude Tuesday. 

The HSBC Holdings/Markit Economics purchasing managers index for China came in at a preliminary 50.5 for April, below analysts' calls for a 51.4 reading. 

Also on Tuesday, data earlier by Markit Economics revealed that Germany’s April manufacturing purchasing managers index fell to 47.9 from 49.0 in March, well below the 50 level that separates contraction from expansion. Analysts were hoping for the production barometer to remain unchanged.

Germany’s service-sector PMI, meanwhile, came in at 49.2, down from 50.9 in March and below market calls for a 51.0 reading. 

In U.S. the Commerce Department said new home sales rose 1.5% last month to a seasonally adjusted annual rate of 417,000 units following a 7.6% drop in February. Analysts expected the March reading to rise to 420,000 units. 

Earlier, API said U.S. crudeOil inventories fell 845,000 barrels last week. Analysts expected an increase of 1.4 million barrels. Gasoline inventories fell by 2.7 million barrels while distillate stockpiles increased by 666,000 barrels. 

The U.S. Energy Information Administration releases its weekly inventory report later Wednesday. That report is more closely followed by traders than the API report. 

Elsewhere, Brent futures for June delivery inched lower by 0.03% to USD100.30 per barrel on the ICE Futures Exchange. Courtesy : Investing.com

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Gold futures rebound in Asia after U.S. drop

Mcx Gold Tips @ www.mcxfreetips.com

                    Gold prices rebounded in the early party of Wednesday’s Asian session after falling during Tuesday’s U.S. amid some concerning economic data points. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.51% to USD1,416.05 per troy ounce in Asian trading Wednesday after settling down 0.64% at USD1,412.05 a troy ounce in U.S. trading on Tuesday. 

Gold futures were likely to test support USD1,403.55 a troy ounce, Monday's low, and resistance at USD1,438.35, Monday's high. 

Gold and other commodities were hit after an HSBC Holdings/Markit Economics purchasing managers index for China came in at a preliminary 50.5 for April, below analysts' calls for a 51.4 reading. 

Also on Tuesday, data earlier by Markit Economics revealed that Germany’s April manufacturing purchasing managers index fell to 47.9 from 49.0 in March, well below the 50 level that separates contraction from expansion. Analysts were hoping for the production barometer to remain unchanged.

Germany’s service-sector PMI, meanwhile, came in at 49.2, down from 50.9 in March and below market calls for a 51.0 reading. 

In U.S. the Commerce Department said new home sales rose 1.5% last month to a seasonally adjusted annual rate of 417,000 units following a 7.6% drop in February. Analysts expected the March reading to rise to 420,000 units. 

Still, there are signs physical demand for gold remains robust. The U.S. Mint ran out of the smallest gold coin it sells and was forced to suspend sales as a result. That coin weighs one tenth of an ounce while the most popular gold coin sold by the U.S. mint weighs a full ounce. 

Elsewhere, Comex silver for May deliver rose 0.50% to USD22.930 per ounce while copper for May delivery added 0.30% to 3.098 per ounce.
Courtesy : Investing.com

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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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