Silver futures trade near one-month low on Fed stimulus outlook

                Silver prices traded near the previous session’s one-month low on Wednesday, as growing expectations that the Federal Reserve will start to scale back its stimulus program by the end of the year weighed on sentiment.

On the Comex division of the New York Mercantile Exchange, silver futures for December delivery traded at USD20.78 a troy ounce during European morning trade, little changed on the day.

Comex silver prices traded in a range between USD20.62 a troy ounce, the daily low and a session high of USD20.81.

The December contract tumbled to USD20.56 a troy ounce on Tuesday, the lowest since October 15, before settling at USD20.77, down 2.37%.

Futures were likely to find support at USD20.50 a troy ounce, the low from October 15 and resistance at USD21.33, the high from November 12.

Tuesday’s losses came after Atlanta Fed President Dennis Lockhart said the central bank could begin to reduce the pace of its bond-buying program as soon as December. 

Dallas Fed President Richard Fisher also warned about a stimulus reduction, saying “at some point we will have to taper.”

Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.

Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.

Silver futures are down approximately 30% this year on concerns the Fed will begin cutting back its easy-money policy sooner-than-expected.

Elsewhere on the Comex, gold for December delivery inched up 0.3% to trade at USD1,275.30 a troy ounce, while copper for December fell 1.2% to trade at USD3.195 a pound, the lowest since August 8. 

Copper traders were disappointed with the lack of concrete details on policy reforms announced at China's Third Plenum meeting, which concluded on Tuesday. 

Leaders pledged to let markets play a decisive role in the economy over the next decade, but no further details were provided.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. - investing.com

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Copper plunges to 3-month low on China disappointment, Fed concerns

          Copper futures tumbled to the lowest level since August on Wednesday, after a top-level Communist Party meeting disappointed investors and amid growing speculation the Federal Reserve will begin tapering its asset purchase program at its December policy meeting.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.191 a pound during European morning trade, down 1.35%. 

Comex copper prices fell to a session low of USD3.186 a pound earlier, the weakest level since August 8.

The December contract settled 0.78% lower on Tuesday to end at USD3.234 a pound.

Copper prices were likely to find support at USD3.174 a pound, the low from August 8 and resistance at USD3.258 a pound, the high from November 12.

Copper traders were disappointed with the lack of concrete details on policy reforms announced at China's Third Plenum meeting, which concluded on Tuesday. 

Leaders pledged to let markets play a decisive role in the economy over the next decade, but no further details were provided.

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

Meanwhile, growing speculation the Federal Reserve will begin tapering its asset purchase program at its December policy meeting also weighed.

Atlanta Fed President Dennis Lockhart said Tuesday that the central bank could begin to reduce the pace of its bond-buying program as soon as December. 

Dallas Fed President Richard Fisher also warned about a stimulus reduction, saying “at some point we will have to taper.”

Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.

Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.

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.

Elsewhere on the Comex, gold for December delivery inched up 0.35% to trade at USD1,275.40 a troy ounce, while silver for December delivery was little changed to trade at USD20.77 a troy ounce. - investing.com

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Crude oil futures trade near 5-month low ahead of U.S. supply data

                 Crude oil futures traded near the previous session’s five-month low on Wednesday, as market players awaited key U.S. weekly supply data to gauge the strength of oil demand from the world’s largest consumer. 

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD93.32 a barrel during European morning trade, up 0.3%. 

New York-traded oil futures traded in a range between USD92.93 a barrel, the daily low and a session high of USD93.42 a barrel.

The December contract tumbled to USD92.86 a barrel on Tuesday, the lowest since June 24, before settling at USD93.04 a barrel, down 2.21%.

Oil futures were likely to find near-term support at USD92.73 a barrel, the low from June 24 and resistance at USD95.22 a barrel, the high from November 12.

Tuesday’s losses came after Atlanta Fed President Dennis Lockhart said the central bank could begin to reduce the pace of its bond-buying program as soon as December. 

Dallas Fed President Richard Fisher also warned about a stimulus reduction, saying “at some point we will have to taper.”

Last week’s stronger than forecast U.S. nonfarm payrolls report prompted investors to bring forward expectations for a reduction in the Fed’s USD85 billion-a-month asset purchase program.

Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.

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.

Oil traders also 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 data comes out a day later than usual due to the Veterans Day holiday on Monday.

The American Petroleum Institute will release its inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by one million barrels.

Total U.S. crude oil inventories stood at 385.4 million barrels as of last week, the highest since June.

Elsewhere, on the ICE Futures Exchange, Brent oil futures for December delivery rose 0.5% to trade at USD106.33 a barrel, with the spread between the Brent and crude contracts standing at USD13.01 a barrel. - investing.com

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Gold rebounds from 4-week low on bargain buying, Fed taper fears remain

              Gold futures came off the previous session’s four-week low on Wednesday, as investors returned to the market to seek cheap valuations.

Gains were likely to remain limited amid growing speculation the Federal Reserve will begin tapering its asset purchase program at its December policy meeting. 

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,274.30 a troy ounce during European morning trade, up 0.25%. 

Comex gold prices traded in a range between USD1,265.10 a troy ounce, the daily low and a session high of USD1,276.40 a troy ounce.

The December contract tumbled to USD1,260.50 a troy ounce on Tuesday, the lowest since October 15, before settling at USD1,271.20, down 0.77%.

Gold futures were likely to find support at USD1,251.10 a troy ounce, the low from October 15 and resistance at USD1,287.70, the high from November 11.

Tuesday’s losses came after Atlanta Fed President Dennis Lockhart said the central bank could begin to reduce the pace of its bond-buying program as soon as December. 

Dallas Fed President Richard Fisher also warned about a stimulus reduction, saying “at some point we will have to taper.”

Speculation that the Fed may start to taper its USD85 billion-a-month asset purchase program as soon as next month mounted after official data last week showed that the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists. 

Investors were turning their attention to Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve, for indications on the future course of U.S. monetary policy.

Gold prices are down approximately 25% this year on concerns the Fed will begin to scale back its stimulus sooner than expected.

Elsewhere on the Comex, silver for December delivery inched up 0.1% to trade at USD20.79 a troy ounce, while copper for December delivery tumbled 1% to trade at USD3.201 a pound, the lowest since September 17.

Copper traders were disappointed with the lack of concrete details on policy reforms announced at China's Third Plenum meeting, which concluded on Tuesday. 

Leaders pledged to let markets play a decisive role in the economy over the next decade, but no further details were provided.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. - investing.com

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Gold eases marginally in early Asian trade, China watched

                Gold prices eased marginally in early Asian trade on Tuesday, continuing a decline from overnight on expectations the dollar will continue to make gains as the Federal Reserve looks to begin scaling back its monetary stimulus programs in the near future.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,281.00 a troy ounce, down 0.01%, in Asia.

Gold prices hit a session low of USD1,278.50 a troy ounce and high of USD1,288.40 a troy ounce on Monday in New York.

On Friday, the Bureau of Labor Statistics reported that the U.S. economy added 204,000 jobs in October, far surpassing expectations for a 125,000 increase, bolstering the chances the Fed could start to trim its USD85 billion monthly bond buying program as early as December.

In Asia, attention was focused on any details from a meeting of senior Chinese leaders setting economic and social policies for the next decade, which is set to end Tuesday. A key outcome of the meeting for markets would be any timetable for full convertibility of the yuan.

China and India are the world's top importers of gold. India has recently moved to restrict imports because of current account concerns and the rupee is not fully convertible. But a fully-convertible yuan could pave the way for a significant increase in gold trade in China. - investing.com

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NYMEX crude falls in early Asia trade on profit taking

        Crude oil prices slipped in early Asian trade Tuesday, giving back some of the gains overnight after talks between Iran and Western failed to reach an agreement that could ease sanctions on crude exports.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December traded at USD94.95 a barrel, down 0.20%, in Asia. The commodity hit a session low of USD94.12 and a high of USD95.38.

Trade sanctions slapped on Iran because of its alleged nuclear ambitions have taken out more than 1 million barrels per day of oil from the global market and were a centerpiece of weekend  talks among the U.S., Russia, China, Britain, Germany, France and Iran.

In Asia on Tuesday, the focus is on any new policies announced in the energy sector following the conclusion of a meeting of Chinese leaders over the past several days held to set social and economic policy goals. Of particular interest is any timetable for full convertibility of the yuan and moves to open upstream oil and gas exploration to foreign investors.

On the ICE Futures Exchange, Brent oil futures for December delivery ended up 1.19 to $106.37 a barrel on Monday. - investing.com

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Natural gas futures - weekly outlook: November 11 - 15

          Natural gas futures rose more than 1% on Friday, as market participants continued to focus on near-term weather forecasts to gauge the strength of demand for the fuel.

Natural gas prices have closely tracked weather forecasts in recent weeks, as traders try to gauge the impact of shifting outlooks on early-winter heating demand. 

On the New York Mercantile Exchange, natural gas futures for delivery in December advanced 1.14% on Friday to settle the week at USD3.559 per million British thermal units.

The December contract rallied to USD3.622 per million British thermal units  on Thursday, the highest since October 31, before settling at USD3.519, up 0.6%. 

Nymex gas futures were likely to find support at USD3.454 per million British thermal units, the low from November 6 and resistance at USD3.658, the high from October 31.

On the week, December natural gas prices rose 1.29%.

Updated weather forecasting models called for chilly temperatures across most parts of the eastern half of the U.S. during the next six-to-ten-days.

Forecasts originally called for mild weather during the period.

Bullish speculators are betting that colder weather will increase demand for the heating fuel. The heating season from November through March is the peak demand period for U.S. gas consumption.

Meanwhile, U.S. supply levels also remained in focus. The U.S. Energy Information Administration said on Thursday that natural gas storage in the U.S. rose by 35 billion cubic feet, broadly in line with forecasts.

Inventories rose by 27 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 36 billion cubic feet.

Total U.S. natural gas storage stood at 3.814 trillion cubic feet as last week, 2.9% below last year's unusually high level but 1.5% above the five-year average for this time of year.

Early injection estimates for this week’s storage data range from 16 billion cubic feet to 36 billion cubic feet, compared to a 12 billion cubic feet increase during the same week a year earlier.

The five-year average for the week is a build of 19 billion cubic feet.

Elsewhere in the energy complex, light sweet crude oil futures for December delivery settled at USD94.60 a barrel by close of trade on Friday, little changed on the week. 

Meanwhile, heating oil for December delivery shed 0.52% on the week to settle at USD2.868 per gallon by close of trade Friday. - investing.com

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Crude oil futures - weekly outlook: November 11 - 15

New York-traded crude oil futures ended Friday’s session marginally higher, as stronger-than-expected U.S. jobs data indicated that the U.S. economy shrugged off the impact of the government shutdown, however gains were limited amid ongoing uncertainty over the duration of the Federal Reserve’s stimulus program. 

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.

On the New York Mercantile Exchange, light sweet crude futures for delivery in December inched up 0.42% on Friday to settle the week at USD94.60 a barrel by close of trade. 

The December contract settled down 0.63% at USD94.20 a barrel on Thursday. 

Oil futures were likely to find support at USD93.07 a barrel, the low from November 5 and resistance at USD95.40 a barrel, the high from November 6.

On the week, U.S. oil futures were little changed.

The Department of Labor said the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists. September's figure was revised up to 163,000 from a previously reported 148,000. 

The unemployment rate ticked up to 7.3% from an almost five-year low of 7.2% the previous month.

The report came one day after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%.

The robust data eased concerns over a slowdown in demand from the world’s largest oil consumer.

U.S. crude prices have been on a downward trend in recent weeks amid worries the recent U.S. government shutdown created a drag on economic growth and eroded demand.

Total U.S. crude oil inventories stood at 385.4 million barrels as of last week, the highest since June.

Crude’s gains were limited as the U.S. dollar strengthened amid expectations that the Federal Reserve will begin tapering its USD85 billion-a-month asset purchase program as soon as next month.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.48% on Friday to settle the week at 81.29, the strongest level since September 13.

In the week ahead, investors will be closely watching Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve. 

Meanwhile, the euro zone and Japan are to release preliminary data on third quarter growth

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for December delivery rallied 1.6% on Friday to settle the week at USD105.12 a barrel.

Brent prices rallied after U.S. Secretary of State John Kerry said that there are “some important gaps” in reaching a resolution that would ease sanctions against Iran’s oil exports in exchange for concessions on its nuclear work. 

Trade sanctions slapped on Iran due to its alleged nuclear ambitions have taken out more than one million barrels per day of oil from the global market.

Despite Friday’s strong gains, the London-traded Brent contract lost 0.74% on the week, while the spread between the Brent and the crude contracts stood at USD10.52 a barrel by close of trade on Friday. - investing.com

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Gold / Silver / Copper futures - weekly outlook: November 11 - 15

             Gold futures ended Friday’s session at a three-week low, after stronger-than-expected U.S. nonfarm payrolls data fuelled speculation that the Federal Reserve may start tapering stimulus sooner-than-expected.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery tumbled 1.83% on Friday to settle the week at USD1,284.60 a troy ounce. 

Comex gold prices fell to a session low of USD1,280.50 a troy ounce earlier in the day, the weakest level since October 17. The December contract fell 0.71% on Thursday to settle at USD1,308.50 a troy ounce.

Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,325.70, the high from November 7.

On the week, the precious metal lost 2.17%, the second consecutive weekly decline.

The Department of Labor said the U.S. economy added 204,000 jobs in October, much more than the 125,000 increase forecast by economists. September's figure was revised up to 163,000 from a previously reported 148,000. 

The unemployment rate ticked up to 7.3% from an almost five year low of 7.2% the previous month.

The report came one day after official data showed that the U.S. economy grew at an annual rate of 2.8% in the three months to September, well above expectations for growth of 2%.

The U.S. dollar strengthened across the board after the robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as next month.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, rose 0.48% on Friday to settle the week at 81.29, the strongest level since September 13.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Gold prices are down approximately 24% this year on concerns the Fed would begin cutting back its easy-money policy by trimming its USD85-billion monthly bond purchases.

In the week ahead, investors will be closely watching Thursday’s Senate hearing to confirm Janet Yellen as the first chairwoman of the Federal Reserve.

Elsewhere on the Comex, silver for December delivery dropped 1.57% on Friday to settle the week at USD21.31 a troy ounce. Comex silver fell to a session low of USD21.25 a troy ounce earlier in the day, the lowest since October 15. 

Silver prices settled 0.51% lower at USD21.65 on Thursday. On the week, silver future prices lost 2.38%, the second consecutive decline.

Meanwhile, copper for December delivery inched up 0.17% on Friday to close the week at USD3.254 a pound. On Thursday, copper futures added 0.36% to settle at USD3.248 a pound.

Despite Friday’s modest gains, copper prices still fell 1.33% on the week, amid expectations that the Federal Reserve will begin tapering its stimulus program sooner-than-expected.

Data released over the weekend showed that Chinese industrial output rose more-than-forecast in October, while consumer price inflation inched up modestly.

Industrial production in China rose 10.3% last month, beating expectations for a 10.0% increase, while CPI inched up to 3.2% from 3.1% in September, missing estimates for 3.3% inflation. 

Chinese trade data released Friday showed that both imports and exports rose in October, easing concerns over a slowdown in the world’s second-largest economy and biggest consumer of the industrial metal.

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

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Gold trades slightly lower as Asia evaluates U.S. data

               Gold futures traded modestly lower in the early part of Friday’s Asian session as traders in the region evaluated some U.S. data points that could imply the Federal Reserve has room to consider tapering its quantitative easing program sooner than some had hoped. 

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery inched down 0.02% to USD1,308.20 per troy ounce in Asian trading Friday. The December contract settled lower by 0.71% at USD1,308.50 per ounce on Thursday. 

Gold futures were likely to find support at USD1,251.10 a troy ounce, the low from Oct. 15, and resistance at USD1,361.70, the high from Oct. 28.

In U.S. economic news out Thursday, the Commerce Department said the U.S. economy grew at an annual rate of 2.8% in the three months to September, far surpassing expectations for a 2.0% reading. The U.S. economy grew by 2.5% in the preceding quarter.

Separately, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 9,000 to a seasonally adjusted 336,000, largely in line with analysts' forecasts for a claims to fall by 10,000. 

Gold was also pressured as the dollar rallied after the European Central Bank surprisingly lowered interest rates to a record-low 0.25% from 0.5%. The bank also cut its marginal lending rate to 0.75% from 1% and left its deposit facility rate unchanged at zero. 

The economic news served ignite fears the Fed could taper its USD85 billion-per-month bond-buying program as soon as next month whereas most traders were expecting tapering would be in the conversation again until the end of the first quarter of 2014. 

Elsewhere, Comex silver for December delivery rose 0.14% to USD21.688 per ounce while copper for December delivery jumped 0.53% to USD3.259 an ounce.  - investing.com

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