Gold prices fluctuate in Asia after upbeat U.S. economic data

                 Gold futures fluctuated between small gains and losses on Thursday during Asian trading after an upbeat regional U.S. factory barometer fueled expectations for the Federal Reserve to continue scaling back its USD75 billion monthly bond-buying program, which supports gold by keeping the dollar weak. 

An optimistic take on the global economy by the World Bank, meanwhile, sent investors snapping up stocks, which also came at gold's expense. 

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded up 0.27% at USD1,241.70 a troy ounce during Asian trading. On Wednesday Gold traded between USD1,240.50 and off a high of 1,242.10. 

The February contract settled down at USD1,240.90 on Wednesday. 

Futures were likely to find support at USD1,217.80 a troy ounce, the low from Jan. 8, and resistance at USD1,254.70, Tuesday's high. 

The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December. Analysts were expecting the index to rise to only 3.75.

Elsewhere, U.S. wholesale prices beat expectations and firmed the dollar, which tends to trade inversely with gold. 

The U.S. producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was also up 1.2% from a year earlier. 

Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%. 

The solid data convinced investors that the Federal Reserve will wind down its USD75 billion in monthly bond purchases as the year progresses. 

Bond purchases weaken the dollar by driving down long-term interest rates, and talk of their dismantling tends to strengthen the greenback, thus chipping away at gold's role as a hedge. 

Wednesday's economic indicators were the latest convincing investors that the poor December jobs repor was likely a hiccup on the road to recovery. 

Separately, the World Bank predicted earlier the global economy will expand 3.2% this year, up from a June forecast calling for 3% growth, which sent investors seeking risk-on asset classes favoring stocks over gold. 

Meanwhile, silver for March delivery was up 0.37% and trading at USD20.208 a troy ounce, while copper futures for March delivery were down 0.07% and trading at USD3.352 a pound.
- investing.com

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Crude oil gains on New York factory data, U.S. supply report

                  A robust New York state factory report coupled with relatively bullish U.S. inventory figures sent oil prices gaining on Wednesday on hopes demand may be picking up in the world's largest consumer of crude.


On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD94.64 a barrel during U.S. trading, up 2.00%. New York-traded oil futures hit a session low of USD92.63 a barrel and a high of USD94.72 a barrel.

The March contract settled up 0.84% at USD92.01 a barrel on Tuesday. Nymex oil futures were likely to find support at USD91.65 a barrel, Monday's low, and resistance at USD95.73 a barrel, the high from Jan. 3.

The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December. Analysts were expecting the index to rise to only 3.75.

Elsewhere, U.S. wholesale prices beat expectations and firmed oil prices further by painting a picture of a more robust economy, one that will demand more fuel and energy going forward. 

The U.S. producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was 1.2% higher from a year earlier.

Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%.

Supply data sent prices gaining as well.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 7.66 million barrels in the week ended Jan. 10, well above expectations for a decline of 613,000 barrels. 

Total U.S. crude oil inventories stood at 350.2 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 6.18 million barrels, above expectations for a gain of 2.54 million barrels.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for March delivery were up 0.74% and trading at USD106.38 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD11.74 a barrel. - investing.com

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Natural gas posts fresh gains on expectations for bullish supply report

Natural gas futures rose for a fourth consecutive session on Wednesday amid hopes that Thursday's inventory data will reveal a recent winter storm that froze much of the U.S. has taken its toll on supplies.

On the New York Mercantile Exchange, natural gas futures for delivery in February traded at USD4.416 per million British thermal units during U.S. trading, up 1.06%. The commodity hit session high of USD4.431 and a low of USD4.335.

The February contract settled up 2.22% on Tuesday to end at USD4.369 per million British thermal units. Natural gas futures were likely to find support at USD4.119 per million British thermal units, Monday's low, and resistance at USD4.471, the high from Dec. 30.

A recent blast of frigid air sent temperatures falling dangerously low in recent days, and energy markets were betting Wednesday the weather system will reflect in Thursday's supply data.

Early withdrawal estimates for this Thursday’s storage data range from 250 billion cubic feet to 339 billion cubic feet. The five-year average change for the week is a decline of 159 billion cubic feet.

The largest drop on record is a decrease of 285 billion cubic feet in the seven days ended Dec. 13, Energy Information Administration data show.

Natural gas supplies fell by 157 billion cubic feet last week to hit 2.817 trillion cubic feet, approximately 16% below last year's unusually high level and nearly 10% below the five-year average for this time of year.

Meanwhile, updated weather forecasting models continued to predict below-normal temperatures in the week ahead for much of the U.S., which also pressured prices higher. 

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in March were up 1.82% and trading at USD94.47 a barrel, while heating oil for February delivery were up 1.76% and trading at USD2.9880 per gallon. - investing.com

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Copper futures lower after China lending, money supply data

               

Copper futures were lower on Wednesday, after data showed that Chinese bank lending and money supply growth for December came in below expectations, underlining concerns over liquidity levels.

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

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.317 a pound during European morning trade, down 0.6%. Comex copper prices held in a range between USD3.308 a pound and USD3.337 a pound.

The March contract ended Tuesday’s session down 0.31% to settle at USD3.336 a pound. Copper prices were likely to find support at USD3.289 a pound, the low from January 10 and resistance at USD3.350 a pound, the high from January 14.

Official data released earlier showed that Chinese new loans dropped to CNY482.5 billion in December from CNY624.6 billion in November and missed forecasts of CNY600 billion.

The broad M2 money supply rose 13.6% on year in December, compared to growth of 14.2% in November and below forecast for a 14% increase.

Market players looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy. The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region.

Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus.

Data released Tuesday showed that U.S. retail sales rose 0.2% in December, while core retail sales, which excludes auto sales, rose 0.7%.

The upbeat data helped bolster expectations that the economic recovery in the U.S. will continue to deepen this year and offset concerns over last week’s surprising poor nonfarm payrolls report for December.

The central bank is scheduled to meet January 28-29 to review the economy and assess 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 February delivery fell 0.7% to trade at USD1,236.70 a troy ounce, while silver for March delivery dropped 1.15% to trade at USD20.05 a troy ounce.
- investing.com

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Gold, silver prices under pressure ahead of key U.S. economic data

            Gold and silver prices were under pressure on Wednesday, as market players looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,236.60 a troy ounce during European morning trade, down 0.7%. 

Gold prices held in a range between USD1,235.30 a troy ounce and USD1,244.90 a troy ounce. Futures were likely to find support at USD1,226.60 a troy ounce, the low from January 10 and resistance at USD1,254.90, the high from January 14.

Meanwhile, silver for March delivery dropped 1.1% to trade at USD20.05 a troy ounce. Comex silver prices held in a range between USD20.03 a troy ounce and USD20.26 a troy ounce. Silver futures were likely to find support at USD19.54 a troy ounce, the low from January 10 and resistance at USD20.60, the high from January 14. 

The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region later Wednesday.

Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus.

Data released Tuesday showed that U.S. retail sales rose 0.2% in December, while core retail sales, which excludes auto sales, rose 0.7%.

The upbeat data helped bolster expectations that the economic recovery in the U.S. will continue to deepen this year and offset concerns over last week’s surprising poor nonfarm payrolls report for December.

Fed board members Charles Plosser and Richard Fisher yesterday called for an end to bond buying. The Fed announced its first cut to the USD85 billion in monthly bond purchases in December, citing an improving economy.

The central bank is scheduled to meet January 28-29 to review the economy and assess policy.

Elsewhere on the Comex, copper futures for March delivery fell 0.6% to trade at USD3.317 a pound. 

Copper prices moved lower after data showed that Chinese bank lending and money supply growth for December came in below expectations, underlining concerns over liquidity levels.

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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WTI oil futures inch higher ahead of weekly supply data

              U.S. oil futures inched higher in rangebound trade on Wednesday, as investors looked ahead to key U.S. weekly supply data due later in the day to gauge the strength of oil demand from the world’s largest consumer.

On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in March traded at USD92.94 a barrel during European morning trade, up 0.2%. New York-traded oil futures held in a tight range between USD92.63 a barrel and USD93.03 a barrel.

The March contract settled 0.84% higher on Tuesday to end at USD92.78 a barrel as upbeat December retail sales data helped offset concerns about the U.S. economy following Friday's weak jobs report.

Nymex oil futures were likely to find support at USD91.65 a barrel, the low from January 13 and resistance at USD93.56 a barrel, the high from January 10. 

Wednesday’s government report was expected to show that crude oil stockpiles fell by 0.6 million barrels last week, while gasoline inventories were forecast to increase by 2.6 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 4.14 million barrels in the week ended January 10, compared to expectations for a decline of 1.6 million barrels.

The data also showed that gasoline stockpiles increased by 5.36 million barrels, above expectations for a gain of 2 million barrels.

Investors also looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy. The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region.

Market players have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus. The central bank is scheduled to meet January 28-29 to review the economy and assess policy.

Elsewhere, on the ICE Futures Exchange in London, Brent oil futures for February delivery inched down 0.15% to trade at USD105.45 a barrel, while the spread between the Brent and U.S. crude contracts stood at USD12.51 a barrel.

London-traded Brent prices have been under pressure in recent sessions as the prospect of a rise in Iranian oil exports weighed. - investing.com

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Gold edges lower after World Bank raises global growth forecast

                 Gold prices were lower on Wednesday, after the World Bank upgraded its global economic growth forecasts.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,239.60 a troy ounce during European morning trade, down 0.45%. Gold prices held in a range between USD1,238.00 a troy ounce and USD1,244.90 a troy ounce.

The February contract settled 0.46% lower on Tuesday to end at USD1,245.40 a troy ounce as upbeat December retail sales data helped offset concerns about the U.S. economy following Friday's weak jobs report.

Futures were likely to find support at USD1,226.60 a troy ounce, the low from January 10 and resistance at USD1,254.90, the high from January 14.

Meanwhile, silver for March delivery declined 0.9% to trade at USD20.10 a troy ounce. The March contract ended Tuesday’s session with a loss of 0.51% to settle at USD20.28 a troy ounce.

In its bi-annual Global Economic Prospects report released earlier, the World Bank said that global growth is set to accelerate 3.2% this year, compared with a June projection of 3% and up from 2.4% in 2013.

The forecast for developed nations was raised to 2.2% from 2%, citing improved outlooks for both the U.S. and the euro zone.

Market players looked ahead to key U.S. economic data later in the day for further indications on the future course of U.S. monetary policy. The U.S. is to release data on producer price inflation and a report on manufacturing activity in the New York region.

Investors have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Federal Reserve to scale back stimulus. The central bank is scheduled to meet January 28-29 to review the economy and assess policy.

Elsewhere on the Comex, copper futures for March delivery fell 0.75% to trade at USD3.312 a pound. Copper prices moved lower after data showed that Chinese bank lending and money supply growth for December came in below expectations, underlining concerns over liquidity levels.

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 declines on U.S. recovery concerns

          Copper futures fell on Monday, after disappointing U.S. jobs data cast doubt on the strength of the economic recovery.

Copper is sensitive to the economic growth outlook because of its widespread uses across industries. The U.S. is second behind China in global copper demand.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.323 a pound during European morning trade, down 0.55%. Comex copper prices held in a range between USD3.322 a pound and USD3.367 a pound.

The March contract ended Friday’s session up 1.29% to settle at USD3.341 a pound. Copper prices were likely to find support at USD3.289 a pound, the low from January 10 and resistance at USD3.377 a pound, the high from January 8.

The U.S. economy added just 74,000 jobs in December, the Labor Department said Friday, the smallest increase since January 2011 and well below expectations for 196,000 new jobs.
The unemployment rate fell to a five-year low of 6.7% last month from 7% in November, but this was due in part to people dropping out of the labor force. The labor participation rate fell to an almost 35-year low of 62.8%.

The disappointing data cooled expectations that the Federal Reserve would cut its stimulus program again this month. The central bank cited a stronger labor market in its decision to taper its asset purchase program by USD10 billion in December to USD75 billion-a-month.

Minutes of the Fed’s December meeting released last week showed that officials were keen to stress that further reductions in stimulus were not on a “preset course” and would be undertaken in “measured” steps. The central bank is scheduled to meet January 28-29 to review the economy and assess policy.

Elsewhere on the Comex, gold for February delivery dipped 0.1% to trade at USD1,245.40 a troy ounce, while silver for March delivery shed 0.75% to trade at USD20.07 a troy ounce. investing.com

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Silver prices turn lower after hitting 5-week high

     Silver prices were lower on Monday, as traders booked profits from a recent rally which took prices to a five-week high earlier in the session.

On the Comex division of the New York Mercantile Exchange, silver for March delivery shed 0.75% to trade at USD20.07 a troy ounce during European morning trade. Comex silver prices rose to a session high of USD20.35 a troy ounce earlier, the strongest level since December 11.
The March contract ended Friday’s session up 2.74% at USD20.22 a troy ounce. Futures were likely to find support at USD19.54 a troy ounce, the low from January 10 and resistance at USD20.47, the high from December 11.

Meanwhile, gold futures for February delivery traded at USD1,246.00 a troy ounce, down 0.07%. Gold prices climbed to a daily high of USD1,254.00 a troy ounce earlier, the strongest since December 12.

Comex gold prices settled 1.42% higher on Friday to end at USD1,246.90 a troy ounce. Futures were likely to find support at USD1,226.60 a troy ounce, the low from January 10 and resistance at USD1,256.50, the high from December 12.

The U.S. economy added just 74,000 jobs in December, the Labor Department said Friday, the smallest increase since January 2011 and well below expectations for 196,000 new jobs.
The unemployment rate fell to a five-year low of 6.7% last month from 7% in November, but this was due in part to people dropping out of the labor force. The labor participation rate fell to an almost 35-year low of 62.8%.

The disappointing data cooled expectations that the Federal Reserve would cut its stimulus program again this month. The central bank cited a stronger labor market in its decision to taper its asset purchase program by USD10 billion in December to USD75 billion-a-month.
Minutes of the Fed’s December meeting released last week showed that officials were keen to stress that further reductions in stimulus were not on a “preset course” and would be undertaken in “measured” steps.

The central bank is scheduled to meet January 28-29 to review the economy and assess policy. Expectations of monetary stimulus tend to benefit gold and silver, as the precious metals are seen as a safe store of value and inflation hedge.

Elsewhere on the Comex, copper futures for March delivery declined 0.35% to trade at USD3.331 a pound. investing.com

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Gold prices ease in Asia ahead of HSBC China Nov flash PMI

                  Gold prices fell in early Asian trade on Thursday, continuing declines seen overnight after the Federal Reserve said in the minutes of its October policy meeting that it could begin tapering asset purchases in the coming months.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,245.70 a troy ounce, down 0.98%, in a range of 1,241.70 - 1,246.90. Overnight, gold prices hit a session low of USD1,240.30 a troy ounce and high of USD1,275.70 a troy ounce.

On the horizon Thursday in Asia is the closely watched HSBC November flash purchasing managers index for China, forecast to come out at 50.8, easing from 50.9 for the final in October at 0945 local time (0145 GMT). China and India are the world's top gold importers.

Also ahead is a Bank of Japan policy announcement at 1230 local time (0330 GMT) with the benchmark rate forecast stable at 0.10%. BoJ Governor Haruhiko Kuroda will hold a news conference at 1530 local time (0630 GMT).

In the U.S. a decision to taper the pace of assets will come when economic indicators point to an economy that is clearly gaining steam, and although monetary authorities did not suggest when that time may arrive, metals markets felt it will come soon.

"During this general discussion of policy strategy and tactics, participants reviewed issues specific to the Committee's asset purchase program. They generally expected that the data would prove consistent with the Committee's outlook for ongoing improvement in labor market conditions and would thus warrant trimming the pace of purchases in coming months," the minutes read.

Elsewhere, the U.S. Commerce Department reported earlier that retail sales expanded 0.4% in October, blowing past expectations for a 0.1% gain after coming in flat the month earlier.

The data fueled optimism that the consumer-driven U.S. economy is on the mend and may keep the Federal Reserve on track to begin winding down stimulus measures in early 2014.

On Thursday, the U.S. is release data on producer price inflation, as well as the weekly report on initial jobless claims. The U.S. is also to release data manufacturing activity from the Philly Fed. - investing.com

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