Gold Trades Above $1,400 as Investors Weigh Fed Against Syria

     

         Gold traded little changed above $1,400 an ounce after rising the most in a week, as investors weighed the prospects for reduced stimulus in the U.S. against the threat of a military attack against Syria.

Spot gold traded at $1,412.97 an ounce at 11:49 a.m. in Singapore from $1,412.42 yesterday, when prices climbed 1.5 percent, the most since Aug. 23. Gold capped the first back-to-back monthly gain in a year in August as turmoil in the Middle East fanned haven demand.

Bullion fell 16 percent this year on speculation the Federal Reserve will taper stimulus that helped the metal gain for a 12th year in 2012. The U.S. central bank will start to reduce its $85 billion in monthly asset purchases, a program known as quantitative easing, at a meeting on Sept. 17-18, according to 65 percent of economists in a survey last month.

“Tension around Syria will be the near-term driver of gold prices,” said Lv Jie, an analyst at Cinda Futures Co., a unit of one of four funds in China created to buy bad debt from banks. “Recent U.S. economic data reflects a recovery, which should increase expectations for tapering of QE.”

The Bloomberg U.S. Dollar Index rose to a seven-week high after reports yesterday showed manufacturing in the U.S. climbed in August to the strongest since June 2011. U.S. House of Representatives Speaker John Boehner and Majority Leader Eric Cantor backed PresidentBarack Obama’s call for a military strike against Syria.

Gold for December delivery traded at $1,412.80 an ounce on the Comex in New York from $1,412 yesterday, when futures gained 1.1 percent, the most since Aug. 27.

Silver fell 0.5 percent to $24.149 an ounce. Platinum and palladium were little changed at $1,535.65 an ounce and $718.25 an ounce.

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Crude Oil falls in Asia after U.S. data boost

         

              Oil futures traded lower in the early part of Wednesday’s Asian session as traders in the region opt to overlook some encouraging U.S. economic data to focus more on what the next move might be concerning Syria. 

On the New York Mercantile Exchange, light, sweet crude futures for October delivery fell 0.14% to USD108.39 per barrel in Asian trading Wednesday. The October contract settled 0.83% at USD108.54 per barrel on Tuesday. 

After touching USD110 per barrel last week on fears a Western coalition military strike against was imminent, some of the "Syria premium" has come out of crude futures. 

Congressional Republicans said they would support President Barack Obama's calls for military strikes against Syria. 

Key Republican lawmakers including House Speaker John Boehner said earlier Tuesday they'd support a presidential call for U.S. military attacks on Syria via limited air or missile strikes. 

Last week, the U.K. parliament voted against joining the U.S. in coalition strike against Syria, indicating that if the U.S. does pursue a military option, it might have to do so alone. 

Lingering Syria-related tensions prompted traders to focus more on geopolitical news than some encouraging U.S. economic data. 

In U.S. economic news out Tuesday, the Institute for Supply Management said its August manufacturing index climbed to 55.7% from 55.4% in July, good for the highest reading since June 2011. Economists expected a reading of 54.1%. The new orders index soared to 63.2% from 58.3%, but the production index fell to 62.4% from 65%. 

Some analysts believe that once the Syria situation settles down, traders will focus more on improving global economic data and that could send crude to USD112 per barrel or beyond. 

Elsewhere, Brent for October delivery was flat at USD115.71 per barrel on the ICE Futures Exchange.

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Gold down slightly on profit-taking

                        Gold futures traded slightly lower in the early part of Wednesday’s Asian session as traders in the region locked in profits in the yellow metal following a strong showing by bullion on Tuesday. 

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery inched down 0.01% to USD1,411.05 per troy ounce in Asian trading Wednesday. The October contract settled higher by 1.14% at USD1,411.70 per ounce on Tuesday. 

Gold futures were likely to find support at USD1,374.10 a troy ounce, the low from Sept. 1, and resistance at USD1,433.50, the high from Aug. 28.

Traders boosted gold Tuesday as they searched for safe-have plays after congressional Republicans said they would support President Barack Obama's calls for military strikes against Syria. 

Key Republican lawmakers including House Speaker John Boehner said earlier Tuesday they'd support a presidential call for U.S. military attacks on Syria via limited air or missile strikes. 

Last week, the U.K. parliament voted against joining the U.S. in coalition strike against Syria, indicating that if the U.S. does pursue a military option, it might have to do so alone. 

Lingering Syria-related tensions prompted traders to focus more on geopolitical news than some encouraging U.S. economic data. 

In U.S. economic news out Tuesday, the Institute for Supply Management said its August manufacturing index climbed to 55.7% from 55.4% in July, good for the highest reading since June 2011. Economists expected a reading of 54.1%. The new orders index soared to 63.2% from 58.3%, but the production index fell to 62.4% from 65%. 

Elsewhere, Comex silver for December delivery fell 0.13% to USD24.398 per ounce while copper for December delivery dropped 0.27% to USD3.305 per ounce.

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PRECIOUS-Gold heads for 2nd monthly rise; but Syria, stimulus concerns linger

                            Gold held steady on Friday as the probability of an immediate U.S. strike on Syria faded, and strong U.S. data rekindled fears of an imminent scale-back of the Federal Reserve's stimulus measures. The metal is headed for its second straight monthly gain, helped largely by short-covering and technical buying that pushed it above the key $1,400 level this week. At its 3-1/2 month high of $1,433.31 hit on Wednesday, gold had gained 21 percent from the three-year low of $1,180.71 marked on June 28, but it is now struggling to hold at those levels amid a slowdown in physical demand and strong economic data. "Looks like the market is running out of steam at these levels," said one Singapore-based gold trader. "If it cannot hold above $1,400 today, it will surely see a sharp drop." "We have seen quite a sharp slowdown in physical buying." Spot gold had risen 0.1 percent to $1,409.66 an ounce U.S. gross domestic product grew at a 2.5 percent annual rate in the April-June period, more than double the pace clocked in the prior three months. The number of Americans filing new claims for jobless benefits fell last week, a potential sign of faster hiring in August. Strong U.S. data bolsters the case for the tapering of the Fed's massive stimulus that pushed gold to above $1,900 an ounce in 2011. U.S. officials conceded on Thursday they lacked conclusive evidence that Syrian President Bashar al-Assad personally ordered last week's poison gas attack, and some allies have warned that military action without U.N. Security Council authorization risks making the situation worse. As geopolitical tensions in Syria mounted, gold's safehaven appeal had increased.

PHYSICAL SLOWDOWN Gold prices above $1,400 for the first time in more than two months have deterred buyers who had splurged on jewellery, bars and coins earlier this year. In Hong Kong - the key gold supplier to China - gold kilo bar premiums declined to $2.50 an ounce from $5 two weeks ago. Tokyo premiums fell to 50 cents from $1.50, while those in Singapore dropped to $1.50. Dealers said there has been a lot of selling in the physical markets in Asia as consumers look to profit from the higher prices.

Precious metals prices 0407 GMT

Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1409.66 2.02 +0.14 -15.82 Spot Silver 23.90 0.07 +0.29 -21.07 Spot Platinum 1514.74 1.04 +0.07 -1.32 Spot Palladium 735.50 1.52 +0.21 6.29 COMEX GOLD DEC3 1409.90 -3.00 -0.21 -15.87 11665 COMEX SILVER SEP3 23.92 -0.17 -0.71 -21.07 159 Euro/Dollar 1.3240 Dollar/Yen 98.18

COMEX gold and silver contracts show the most active months

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Natural gas prices drop on bearish U.S. inventory figures

                   Natural gas prices dropped on Thursday after official U.S. data revealed that the country's stockpiles rose more than expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.515 per million British thermal units during U.S. trading, down 1.87%. The October contract settled up 0.25% at USD3.582 per million British thermal units on Wednesday.

The commodity hit a session low of USD3.511 and a high of USD3.648.

The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ending Aug. 23 rose by 67 billion cubic feet, above market expectations for an increase of 63 billion cubic feet.

Inventories increased by 64 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 66 billion cubic feet.

Total U.S. natural gas storage stood at 3.130 trillion cubic feet as of last week. Stocks were 235 billion cubic feet less than last year at this time and 45 billion cubic feet above the five-year average of 3.085 trillion cubic feet for this time of year.

The report showed that in the East Region, stocks were 107 billion cubic feet below the five-year average, following net injections of 49 billion cubic feet. 

Stocks in the Producing Region were 95 billion cubic feet above the five-year average of 978 billion cubic feet after a net injection of 16 billion cubic feet.

Also pressuring prices lower were updated weather forecasts calling for below-normal temperatures in parts of the heavily populated northeastern U.S.

Demand for natural gas tends to wane at the country's thermal power plants as temperatures fall, as homes and businesses throttle back on their air conditioners.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were down 0.88% and trading at USD109.13 a barrel, while heating oil for October delivery were down 0.38% and trading at USD3.1993 per gallon.

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Gold prices decline on strong data points

                   

                   Gold prices traded lower in the early part of Friday’s Asian session amid a raft of encouraging U.S. and Asian economic data points. 

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery fell 0.62% to USD1,403.80 per troy ounce in Asian trading Friday. The October contract settled down 0.42% at USD1,412.60 per ounce on Thursday. 

Gold futures were likely to find support at USD1,389.50 a troy ounce, Monday's low, and resistance at USD1,433.50, Wednesday's high. 

In U.S. economic news out Thursday, the U.S. Commerce Department said U.S. GDP grew 2.5% in the second quarter, well above the initial reading that showed growth of 1.7%. Economists expected the revision to show growth of 2.2%. Consumer spending grew 1.8% after rising 2.3% in the first quarter. 

The Labor Department said initial claims for jobless benefits fell by 6,000 to 331,000 last week. Economists expected first-time claims to come in at 332,000.The less volatile four-week moving average rose by 750 to 331,250. 

Strong data points from the world’s largest economy reinvigorated speculation the Federal Reserve will move to begin tapering its quantitative easing program, perhaps as soon as September. 

Gold was also pressured as investors continued to flee to the U.S. dollar as a safe-haven play amid the possibility of a U.S.-led military strike against Syria’s government following its alleged use of chemical weapons, although an attack seemed less imminent on Thursday due to complaints from U.S. lawmakers that they have not been properly consulted. 

Elsewhere, silver for December delivery slipped 1.55% to USD23.767 per ounce while copper for December delivery rose 0.25% to USD3.262 per ounce. - investing.com

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Oil slides on waning fears of Syria attack

                        Crude Oil futures slid in the early part of Friday’s Asian session after the U.K. parliament voted against military action aimed at Syria. 

On the New York Mercantile Exchange, light, sweet crude futures for October delivery plunged 1.42% to USD107.26 per barrel in Asian trading Friday. The October contract settled down 1.18% at USD108.80 per barrel on Thursday. 

While the U.S. and the U.K. have been preparing to attack Syria via missile and air strikes for its alleged use of chemical weapons in its civil war, delays now seem likely due to complaints from U.S. lawmakers that they have not been properly consulted.

Speculation that a U.S. military attack in Syria may engulf the oil-rich Middle East and threaten global supply sent prices gaining on Wednesday, with news reports saying military action was days away. 

After the close of U.S. markets Thursday, the U.K. voted to not proceed with military action against Syria. It is widely expected that France will do the same. However, that does not mean the U.S. will not act alone in its retaliation against, which used chemical weapons against its own citizens. 

Syria headlines overshadowed some strong U.S. economic data. In U.S. economic news out Thursday, the U.S. Commerce Department said U.S. GDP grew 2.5% in the second quarter, well above the initial reading that showed growth of 1.7%. Economists expected the revision to show growth of 2.2%. Consumer spending grew 1.8% after rising 2.3% in the first quarter. 

The Labor Department said initial claims for jobless benefits fell by 6,000 to 331,000 last week. Economists expected first-time claims to come in at 332,000.The less volatile four-week moving average rose by 750 to 331,250. 

Strong data points from the world’s largest economy reinvigorated speculation the Federal Reserve will move to begin tapering its quantitative easing program, perhaps as soon as September. That capped gains for U.S. equities. 

Elsewhere, Brent crude for October delivery fell 0.56% to USD113.82 per barrel on the ICE Futures Exchange. - Investing.com

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Crude oil futures - Weekly outlook: July 29 - August 2

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                             New York-traded crude oil futures ended Friday’s session at a two-and-a-half week low, as markets were jittery ahead of the Federal Reserve's upcoming policy meeting amid ongoing uncertainty over the future of the Federal Reserve's stimulus program.

On the New York Mercantile Exchange, light sweet crude futures for delivery in September dropped 0.82% Friday to settle the week at USD104.63 a barrel by close of trade.

On the week, Nymex oil futures fell 3.24%. 

The release of mixed U.S. data on initial jobless claims and durable goods orders on Thursday fuelled fresh uncertainty over whether the Fed will start to scale back its bond buying program later this year. 

The Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

Separately, the Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June, compared to expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase. 

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. 

Markets were also jittery after data earlier in the week showed that the preliminary reading of China’s HSBC manufacturing purchasing managers' index fell to an 11-month low of 47.7 in July, from a final reading of 48.2 last month. Analysts had expected the index to rise to 48.6. 

China is the world’s second-largest oil consumer behind the U.S. 

Crude Oil prices found some support however, after the American Petroleum Institute on Tuesday said U.S. oil inventories fell by 1.4 million barrels, well below the 2.6 million barrel decline forecast by analysts. 

Recent oil inventory reports have shown that demand has been on the rise in the U.S. in the past few months. 

In the week ahead, the U.S. is to publish data on gross domestic product and manufacturing activity to further gauge the strength of the U.S. economy. In addition, traders will be eyeing the Fed's monthly policy statement for indications on the future of the central bank's bond-buying program.

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 in London, Brent oil futures for September delivery slipped 0.01% on Friday to settle the week at USD107.11 a barrel.

The London-traded Brent contract lost 1.22% over the week, while the spread between the Brent and the crude contracts stood at USD2.48 a barrel by close of trade on Friday. - investing.com

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Gold / Silver / Copper futures - Weekly Outlook: July 29 - August 2

                 

                   
                          Gold futures ended Friday’s session lower, as investors locked in gains following a recent rally as mixed U.S. economic reports eased investors' concerns over a possible near-term end to the Federal Reserve's stimulus program.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery dropped 0.55% on Friday to settle the week at USD1,321.50 a troy ounce. 

Gold futures were likely to find support at USD1,295.45 a troy ounce, the low from July 21 and resistance at USD1,375.85, the high from June 19.

On the week, gold prices added 0.69%. 

Comex gold prices rose to an almost five-week high of USD1,347.85 a troy ounce on Tuesday, a day after a weaker-than-expected report on U.S. home sales fueled market talk that the Federal Reserve will keep stimulus measures in place for now. 

The National Association of Realtors reported earlier that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million. 

The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.

While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now.

Fed officials have said they will pay close attention to economic data when deciding when to taper and eventually close stimulus programs.

An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies. 

In the week ahead, the Fed is to release its monthly monetary policy statement, which will be closely watched for indications on the future of the central bank's stimulus program.

Elsewhere on the Comex, silver for September delivery dropped 0.91% on Friday to settle the week at USD19.97 a troy ounce. Despite Friday's losses, silver future prices gained 0.78% on the week.

Meanwhile, copper for September delivery tumbled 2.54% on Friday to close the week at USD3.105 a pound. 

The red metal lost ground as traders cashed out of the market to lock in gains following Monday’s strong rally that took prices to a five-week high .

Losses were limited however, amid hopes policy makers in China will introduce fresh easing measures to boost growth in the world’s second largest economy and largest consumer of the industrial metal.

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

Comex copper prices declined 1.86% on the week.  - investing.com

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Crude oil lower ahead of U.S. consumer sentiment report

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                               Crude oil futures were lower on Friday, as uncertainty over the future of the Federal Reserve's stimulus program continued to dominated markets, ahead of U.S. consumer sentiment data to be released later in the day. 

On the New York Mercantile Exchange, light sweet crude futures for delivery in September traded at USD105.00 a barrel during European morning trade, down 0.47%. 

The release of mixed U.S. data on initial jobless claims and durable goods orders on Thursday fuelled fresh uncertainty over whether the Fed will start to scale back its bond buying program later this year. 

The Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

The Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June, compared to expectations for an increase of 1.3%, while vore durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase. 

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.

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 September delivery slid 0.30% to trade at USD107.32 a barrel, with the spread between the Brent and crude contracts standing at USD2.32 a barrel. - investing.com

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