Up Beat US Data And Positive Fed Beige Book Pushes Up Copper and Leaves Gold Hanging

Up Beat US Data And Positive Fed Beige Book Pushes Up Copper and Leaves Gold Hanging
Up Beat US Data And Positive Fed Beige Book Pushes Up Copper and Leaves Gold Hanging

Precious metals remain in their trading range bouncing between the top and the bottom of that range. Yesterday gold prices were pushed lower to trade at 1239.00 but recovered a few dollars in the Asian session this morning to trade at 1241.50. The short term range is between 1237-1245 and the near term range is between 1235-1250 leaving gold pretty well rangebound ahead of the FOMC meeting at the end of the month. Silver continues to bounce up and down but seems to be holding the $20 price level. This morning the white metal is trading at 20.180 up by 46 points but has seen huge bounces during its daily trading but ends where it begins. Platinum eased by 15 points to trade at 1429.30 holding on to its longer term gains, while palladium climbed to 743.50 up by 90 cents. Precious metals fell for a second session on Wednesday as the dollar rallied after data showed U.S. producer prices rose sharply in December even though there were few signs of sustained price pressures.

The US Dollar Index gained by around 0.5 percent yesterday on the back of expectations of QE tapering by the Federal Reserve in its meeting on 28-29th January after favorable economic data. However, sharp upside in the currency was capped on the back of rise in risk appetite in market sentiments which led to decline in demand for the low yielding currency. Further, World Bank raising the global growth forecast and keeping the estimates unchanged at 2.8 percent in 2014 for US restricted positive movement in the currency. US Producer Price Index (PPI) gained 0.4 percent in December as against a fall of 0.1 percent in November. Empire State Manufacturing Index jumped to 12.5-mark in January from 1 level in December

Gold prices are expected to move down further as lack of demand in the market and positive data coming from US and other economies is denting the safe haven demand for gold. Gold prices moved down on Wednesday as positive Global outlook reduced the safe haven buying of Gold. IMF expects global growth to pick up this year, though deflation is a rising risk. India has asked jewelers to provide information on purchases of gold bars or jewelry worth more than 500,000 rupees ($8,100) by the end of this month to check and stop the rising smuggling of Gold. Stronger dollar index after positive PPI data from US also pushed the gold prices down. In a move towards making the gold futures contract more transparent and convenient for the Indian market participants, the NCDEX (National Commodity Derivatives Exchange) has taken the first step forward by introducing the Gold-Hedge contract. The contract is directly linked to international gold prices and excludes other charges like customs duty, premiums. 

Industrial metals on the LME traded higher yesterday taking cues from positive global growth forecast for 2014 by the World Bank that fuelled hopes of optimistic demand outlook for the base metals. Also, positive manufacturing data from the US coupled with upbeat global market sentiments acted as a supportive factor for the base metals. Additionally, decline in inventories added an upside in the prices. Further, strength in the DX could not pull the prices lower. Copper is trading at 3.359 climbing 4 points this morning after a steadily climb on Wednesday. Copper traded on a positive note by 0.8 percent on the back of expectations of rise in demand taking cues from positive growth along with decline in inventories by 0.5 percent to 336,250 tons acted as supportive factors.

Metals Mixed With Gold Up A Bit

Metals Mixed With Gold Up A Bit
Metals Mixed With Gold Up A Bit

Gold climbed to a new monthly high on Monday as traders took advantage of the drop in the US dollar to buy up the cheaper commodity. Traders are more concerned with the upcoming FOMC meeting on January 29th. Gold is trading at 1252.50 up by $1.40 at the end of the Asian session. Gold has rebounded from a six-month low of $1,182.27 on Dec. 31, when it capped the largest annual decline since 1981, on signs of strengthening demand in China. The country probably overtook India as the largest user last year. Volumes for the benchmark contract on the Shanghai Gold Exchange fell to 14,630 kilograms yesterday, compared with an eight-month high of 24,875 kilograms a week ago. Precious metals rose to a one-month high on Monday as fresh losses in U.S. equities triggered safe-haven buying and extended the previous session’s bullion rally sparked by lackluster U.S. nonfarm payrolls data. The Dow fell 200 points on Monday as traded began to worry about corporate earnings as data season begins this week.

Information from the U.S. Mint showed gold-coin sales were 63,000 ounces yesterday, topping the 56,000 ounces sold in all of December. The U.K.’s Royal Mint last week said it ran out of 2014 Sovereign gold coins on “exceptional demand.” Assets in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, were unchanged for a third day yesterday after sliding to a five-year low of 793.12 metric tons on Jan. 8.

Industrial metals rose on Monday, lifted by a weaker dollar after worse-than-expected U.S. labor market data reinforced the view that the U.S. Federal Reserve is likely to be cautious in scaling back its bond-buying stimulus program. Platinum reached $1,443.55 an ounce. The most powerful union at the world’s three biggest platinum producers plans meetings with its members this week in South Africa to test whether workers want to strike over pay. Silver dropped 0.3 percent to $20.3368 an ounce after climbing to $20.4657 yesterday, the highest since Dec. 11. Palladium traded at $740 an ounce from $740.05 yesterday, when the metal rose to $746.65, the highest price since Nov. 12.

Copper is up by 4 points this morning trading at 3.344. Depressed copper prices, pushed down by wavering confidence over China’s economic strength, attracted record inflows to ETF Securities’ ETPs for the industrial metal last week.  The Chinese government is trying to reform to avoid its economic dilemmas. Simply put, the new Chinese leader Xi Jinping and his colleagues must implement enough reform while ensuring that growth does not fall off quickly. Copper started the year robustly, but weaker than expected Chinese exports combined with lower HSBC/Markit PMI results for December sent it below $7,230 (£4,395) a ton. It recovered to end the week with only a 2.4 per cent fall from the previous week.

Chinese Trade and Inflation Worry Metals Traders

Chinese Trade and Inflation Worry Metals Traders
Chinese Trade and Inflation Worry Metals Traders

Gold traders are sitting tight waiting for today’s nonfarm payroll release. Gold gained $3.20 in Friday morning’s trade to settle at 1232.60. Precious metals rose on Thursday after two days of losses as traders added positions ahead of Friday’s key U.S. nonfarm payrolls report, which will be closely watched for clues on whether the Federal Reserve will keep trimming its bond-buying stimulus.

Gold prices moved up yesterday after moving in a range, gold ended up its session by moving in a range as mixed data coming from US and China kept the prices of Gold in range. Markets fear that a strong U.S. jobs report later today could prompt the Federal Reserve to further reduce its bond-buying stimulus. Bank of America Merrill Lynch lowered its 2014 average gold price forecast to $1,150, citing an uncertain macro-economic environment and lack of investment demand. Commodity exchange traded products suffered their worst year on record in 2013 as investors dumped gold holdings and joined the equity rally. Gold prices are expected to move lower after showing some upside however, positive US Non-Farm Payroll can push the prices down.  

Silver and other precious metals are taking their cues from gold with silver trading at 19.648 down by 35 points after a mixed trade balance report from China this morning. Chinese exports declined while Chinese imports climbed. Platinum is trading at 1421.90 up by $2.95 while palladium added 60 cents to reach 737.50. Copper might decline amidst concerns that the Chinese economy may continue slow down. China`s PPI which extended its decline for twenty two consecutive months is adding to the evidence that manufacturing sector is extending its weakness.

Copper is trading at 3.30 recovering 3 pips this morning after Thursday’s fall. Copper witnessed a huge fall in its prices in the yesterday`s trading session at the LME platform down by 1.8% .Copper Stockpiles monitored by exchanges in London, New York and Shanghai are at the lowest since November 2012, with LME inventories dropping for a 46th consecutive trading session day is not providing any respite to copper prices as the red metal has been declining on concerns of slowdown in Chinese economy.

Copper might decline amidst concerns that the Chinese economy may slow down As mentioned earlier China`s PPI which extended its decline for twenty two consecutive months is adding to the evidence that the economy weakened. Copper prices remained down for the day as poor Chinese CPI data pushed lower the demand sentiment for copper. China’s Trade Balance moved down to 25.6B vs 33.8B prev, concern over Chinese economy losing its steam is raising. Chinese imports of copper and iron ore likely fell in December from the month before due to a cash crunch and as growth momentum slowed.

 

Is Gold Losing Its Appeal ?

Is Gold Losing Its Appeal ?
Is Gold Losing Its Appeal ?

What can speculators expect from precious metals?

Gold continues to remain within a tight trading range between 1225-1250 well above its expected price. Most analyst forecast gold to be trading in January around the $1180 price level. Gold bulls have been able to successfully fend off the 1200 price with gold falling for just a short time under the psychological 1200 level. There is very little hope for gold, as its hangs on to the edge of the cliff for dear life it is just a matter of time before the fall comes. Gold is trading at 1226.30 at the very bottom of its range.

Gold has lost its appeal of late as a hedge against inflation as Mr. Bernanke has gently guided the Federal Reserve stimulus program through the difficult double edged sword of stimulating the economy and pushing up inflation With the Fed beginning their tapering early than expected there is little likelihood that inflation will skyrocket anytime soon in the US as it remains below expectations.

Gold’s 2nd appeal is for wealth retention, gold has and will continue to steadily increase in value and is a perfect place for long term investing except during economic periods when the prices are pushed up by artificial means. With gold expected to decline to the low 1100 range, this is not the time to enter the gold market to retain wealth as it will take years to recover pass the purchase price.

Lastly gold is a great safe haven, the price of gold skyrockets during geopolitical and economic crisis and returns to its value after these events. After almost 6 years of economic turmoil combined with political crisis mostly from the Middle East, today investors see a calm political climate and a global recovery underway. So once again gold has no appeal.

As gold loses its shine it takes the luster off of the other metals that are part of the precious metals family. Silver is trading at 19.627 adding 88 points today after a strong tumble earlier in the week. Strong economic growth is helping the metal that is classes both as a precious metal and an industrial metal. Platinum is trading at 1419.55 in the green this morning along with palladium which is up $3.30 at 740.10 supported by the growing demand from the auto industry. Palladium is used to produce catalytic converters for automobiles, therefore as the economy improves so does the demand for this semi-precious metal.

Copper is not classed in the precious metals family but it is shiny brighter than gold these days, trading at 3.351 well above its average trading range. Copper the leader of the industrial metals that is used in everything from home construction to manufacturing is seeing demand skyrocket as the housing market recovers and manufacturing expands. Copper fell by 0.5 percent on the back of mounted expectations of further QE taper by the Federal Reserve after minutes of FOMC meet were released yesterday. Also, strength in the DX coupled with mixed global market sentiments acted as negative factors. However, decline in LME inventories along with positive economic data from the Eurozone cushioned sharp downside in prices

 

Gold Facing A Volatile Few Days WIth Major Eco Events On The Calendar

Gold Facing A Volatile Few Days WIth Major Eco Events On The Calendar
Gold Facing A Volatile Few Days WIth Major Eco Events On The Calendar

Speculators have a busy few days with the FOMC meeting minutes due today along with the ADP payroll report ahead of Friday’s nonfarm payroll report. In the middle traders will see the Bank of England and the European Central Bank meetings on Thursday. Each of these critical events singularly or together have the ability to send precious metals and the greenback soaring or tumbling. Gold is trading this morning at 1226.90 giving up $2.70 following its tumble earlier this week. Gold touched $1250 and then made a U turn and continues to fall. Traders are expecting the FOMC minutes today to show that the members are supportive of additional tapering. US economic data remains positive and could push the Fed at its next meeting to increase its tapering and decrease its asset purchases to $50 billion. Prices were hurt by data showing the US trade deficit fell to a four-year low in November as exports hit a record high and weak oil prices held down the import bill. The numbers, the latest in a string of strengthening economic fundamentals, left economists anticipating a far stronger pace of growth for the fourth quarter than previously expected.

The dollar was mixed in Asia on Wednesday as investors await the release of minutes from the Federal Reserve’s most recent meeting to see if it plans to continue winding down its stimulus program. The Fed will later in the day release the minutes from its December meeting, when it said it would reduce its stimulus program by $10 billion a month to $75 billion from January. Analysts will be looking to see if there are any clues about its plans for the scheme this year following a string of upbeat data on the economy. Traders were buoyed by news Tuesday that the US trade deficit had shrunk in November as exports surged. On Friday the Labor Department will release closely watched nonfarm payrolls figures, which will provide fresh insight into the state of the economy. An upbeat jobs report will boost confidence in a further taper from the Fed when they meet on January 29.

Some also warn that as the Fed starts to trim its bond holdings, it could spook financial markets, threatening the economy’s recovery by causing stock prices to drop and interest rates to rise. Traders seem to be moving from gold to equities as the NASDAQ and the S&P reversed their down streak to gain steadily on Tuesday. Elsewhere in metals trading, platinum lost $3.50, or 0.3%, to $1,412 an ounce while palladium shed $3.45, or 0.5%, to $738.25 an ounce. High-grade copper meanwhile, tacked on a penny to $3.37 a pound. Copper gained 0.3 percent on Tuesday on the back of favorable economic data from the Eurozone. Also, a decline in LME copper inventories for the 44th consecutive session by 0.9 percent to 353,075 tonnes along with upbeat global market sentiments supported gains in the metal. However, strength in the DX capped sharp gains.

Gold Recovers From End Of The Year Slump

Gold Recovers For End Of The Year Slump
Gold Recovers For End Of The Year Slump

Gold rebounded as the New Year begins to trade at 1231.50 adding $6.30 this morning after Thursday’s strong gains. Gold has climbed just under $30 since the year started just 24 hours ago. Gold tumbled 28 per cent in 2013 as money-printing by central banks failed to spur inflation, damping demand for a protection of wealth. Assets in bullion-backed exchange-traded products shrank for the first year since the first product was introduced in 2003 as the Federal Reserve said that it will reduce bond purchases this month amid an improving economy. China and India are the world’s largest gold users. There were many investors waiting to enter after the price dropped below $1,200. Short gold holdings, referring to bets on lower prices, jumped almost fourfold from October to Dec. 24, U.S. Commodity Futures Trading Commission data show. Precious metals steadied on Thursday but held near a six-month low touched in the previous session after prospects for a global economic recovery prompted investors to abandon the safe-haven metal. Gold’s gains come after it lost 28 percent in 2013, ending a 12-year bull run and posting its largest loss in 32 years. SPDR holdings moved down by 3.60 tonnes on Thursday to 795 tons. Gold prices are expected to remain higher for the day as year beginning dollar buying and subdued equity markets can push some buying for gold.

Platinum climbed as much as 1.5 per cent to $1,424.88 an ounce, the highest price since Nov. 19, and traded at $1,410.50. The rise extended yesterday’s 2.7 per cent advance, which was the most since October. Silver for immediate delivery rose as much as 1.3 per cent to $20.2828 an ounce, heading for a second weekly gain, and was at $20.1724. Palladium advanced 0.3 per cent to $732.60 an ounce, up 3 per cent and set for the best week since October.

Copper eased by 27 points as Chinese data confused traders. Copper is trading at 3.359 remaining well above its trading range in 2013. Copper prices remained in a range for the day as mixed manufacturing data coming from US, Italy and Spain kept the prices in a tight range.  A stronger dollar internationally also pressured the copper prices. The metal used in power and construction fell 7.2 percent in 2013 but gained more than 4 percent in December. Today Japanese markets remained shut. 

Metals Kick Off The New Year With A Bang

Metals Kick Off The New Year With A Bang
Metals Kick Off The New Year With A Bang

Gold, gold, gold and more gold, seems to be the headline in every financial news release and media site. Everyone is talking about gold’s worse year in almost 30 years a huge decline, but what everyone seems to neglect to say that this is a huge drop after the startling climb of gold in 2011-2013 as the economic and financial crisis pushed traders to the limits with many investors and speculators running to the safety of gold as Europe look like it was going to crash, the US was headed for another great depression and China looked to be closing its walls with its economy failing. What was JP Morgan and Goldman Sack’s predicting for gold just 12-18 months ago. If memory serves me right, many of the well-known and much revered analysts and traders were predicting that gold would break the $2000 price. In fact many brokers were telling their investors it was a sure thing.

After getting off to a rocky start as December 2012 was all about the US financial crisis and the fiscal cliff, which saw traders about to jump off roof tops, 2013 rolled in. Gold remained at a premium as US lawmakers did what they do best, nothing. Eventually they pushed the crisis until later in the year, hoping that it would go away. Sure it did, it went away until a government shutdown in October forced lawmakers to take some action and indeed they did, they pushed everything to 2014.

Fortunately for them, their hopes and dreams were answered, the economic cycle changed and the US economy is now full steam ahead. The Federal Reserve was able to start their tapering process earlier than expected and market stress and fears have turned to risk on trading. Equity markets reached record highs with the Dow and the Nikkei recording multiyear records and gains. The stock market, as measured by the S&P 500 had its strongest performance this year since the Wolf of Wall Street roamed lower Manhattan. The Dow Jones industrial had its best year since 1998. The blue chip index gained 26.5% this year, hitting 52 all-time highs along the way. And the NASDAQ surged 38%, marking its best year since 2009.

If traders are moving to equities, what can we expect from gold…? Yes that is right a big tumble. Gold closed the year just above $1200 and is expected to decline into the low $1100 as the US Federal Reserve continues its tapering and unemployment tumbles. Silver is following cues from gold trading at 20.04 on the first trading day of the year recovering from its close at the end of the year by adding 678 points. Gold has made an amazing recovery this morning also to trade at 1221.50 but these climbs are not on any market changes it is just traders returning to the markets after the holidays and the beginning of the year repositioning.  Copper has climbed this morning in the Asian session to trade at 3.408 as traders remain in a positive mode. Platinum has gained $16.50 to trade at 1386.50 with palladium bring up the tail at 719.70 all metals are in the green this morning as traders kick off 2014 as the year of positive thought. 

Gold & Silver Lose Their Attraction For Wealth Retention

Gold & Silver Lose Their Attraction For Wealth Retention
Gold & Silver Lose Their Attraction For Wealth Retention

Gold tumbled again this morning to trade at 1197.90 and is expected to end the year just under the $1200 price level. Gold continues to lose its appeal for wealth retention and as a hedge against inflation as the US is showing a strong recovery and the global recovery seems to be well underway. Silver fell by 130 points to trade at 19.485 while palladium remains in the green adding $2.90 trading at 712.40 as its industrial demand edges up with increased auto sales offers more demand for the metal for catalytic converters. Platinum dipped by $1.45 to trade at 1358.90 following cues from the precious metals family.  Gold prices fell on Monday below $1200 an ounce, heading for its biggest annual loss in three decades as U.S. equities soared to six-year highs and prospects of global economic recovery boosted appetite for riskier assets. Gold would be facing the first annual loss since 2000 while silver is set for the worst annual performance since 1981. According to CFTC, hedge funds and money managers cut their bullish bets in gold and silver in the week to Dec. 24. Gold ETF’s witnessed outflows of 864.8 metric tons in 2013 which were more than combined inflows in the previous three years, wiping about $73.7 billion from gold funds. Gold prices are expected to move further down as strong US growth prospects and gains in equity markets are likely to hurt gold prices. Precious metals fell in thin holiday trade on Monday, heading for its biggest annual loss in more than three decades at nearly 30 percent, as rising appetite for risk and the prospect of a global recovery tarnished its allure.

China’s net gold imports from Hong Kong fell 42 percent to below 100 tons in November, reflecting a drop in demand from jewelers and retail investors after strong purchases in recent months. Industrial metals was little changed on Monday, trading near its highest in more than four months as expectations of economic recovery in top consumer China underpinned the market. COMEX copper for February delivery closed up at $3.47 a ton. Three month copper on the London Metal Exchange closed down 0.11% at $7374 a ton. Copper prices remained in range on Monday as shortage of physical supplies and falling LME inventories weighed on prices while thin trading volumes limited the downside. Copper stocks in LME warehouses extended their recent decline, dropping to 367,450 tons, the lowest since January. Base metals are expected to move higher on optimism over improved demand on sustained global economic recovery and declining inventories. US PMI and consumer sentiment would be eyed. Copper this morning is trading in the green at 3.385 up by 4 pips while traders wait for Chinese HSBC manufacturing data due on January 1, 2014. 

Gold Remains In Down Trend As Bargain Hunters Support Prices

Gold Remains In Down Trend As Bargain Hunters Support Prices
Gold Remains In Down Trend As Bargain Hunters Support Prices

Gold eased $1.60 to trade at 1210.70 after climbing yesterday on bargain hunting on low volume trading as many markets remained shuttered for the extended Christmas holiday. Commenting on gold outlook, Ekman Commodity Research, said, ”Gold prices are expected to move in range to lower as better than expected US unemployment claims along with Chinese buying and thin volumes can keep the prices in range.

Gold was little changed in thin trade this morning, heading for its biggest annual loss in more than 30 years as hope of a global economic recovery and rallies in equities dent its appeal as an alternative investment. Bullion has fallen more than 25% this year, hurt partly by the long-expected tapering of the US Federal Reserve’s bond-buying stimulus programme, which has been a key driver of gold’s rally in recent years.

Premiums in Singapore, a centre for bullion trading in Southeast Asia, were steady at $1.50 an ounce, with dealers watching the political drama in Thailand. Thailand’s government rejected a call from the Election Commission on Thursday to postpone a February vote after clashes between police and antigovernment protesters in which a policeman was killed and nearly 100 people were hurt.

“Indonesia has been quiet but it has exported a lot of gold in 2013 because of the weak currency,” said a physical dealer in Singapore. “I guess for Thailand, we will have to wait and see. I don’t think the protests will end unless there’s a consensus.”

While in the world market Gold is headed for a near 30 percent drop this year as the United States Federal Reserve is set to begin unwinding its stimulus measures ending a 12-year rally.   

However, low volume during the holiday season could tend to keep the yellow metal volatile. Thursday’s gain of over $10 an ounce is an example of this trend. Investors’ interest is evident from further pruning of their holdings in gold-backed exchange traded funds. Gold holdings in SPDR Trust, world’s biggest exchange-trade fund, dropped further to 804.22 tonnes. It shouldn’t be surprising if the holdings drop below 800 tonnes before the year rolls out.

Silver on the other hand tumbled 91 points to trade at 19.825 after recovering this week from the low $19 price range. Copper declined by 15 pips to trade at 3.374 well above its recent trading range after an erroneous trade before the holiday pushed markets to 3.42 as traders adjust their positions and expect copper to fall back to 3.30-3.34 range. Industrial metals steadied on Tuesday with tighter near-term supplies underpinning prices amid thin liquidity. Japan’s output of rolled copper product rose to 67,751 tonnes in November on a seasonally adjusted basis, up 9.6 percent from a year earlier, preliminary data showed on Wednesday.

 

Copper Traders Get A Surprise as “Error Trade” Sends Prices Soaring

Copper Traders Get A Surprise as "Error Trade" Sends Prices Soaring
Copper Traders Get A Surprise as “Error Trade” Sends Prices Soaring

Copper skyrocketed on Tuesday touching 3.42 breaking its near term highs and sending investors to the bank with huge unexpected profits. Copper had been trading at 3.32 as the session opened in Asia. Just before the early close for the holidays a CME spokesman has now confirmed that an “erroneous trade” had been entered. Volume skyrocketed as automatic sell orders kicked on as the commodity rose. Copper topped out at 3.45 and closed the day and the holiday at 3.37. Copper should continue its decline back to the 3.24 range as soon as markets reopen. U.S. copper jumped 2 percent on the error. The contract gained 7 cents in about 10 seconds during the trading glitch, said, a senior metals trader at Chicago’s Integrated Brokerage Services who watched the move.   “Unless you had something sitting up there, there was no ability to react,” the trader said.

The excitement in copper aside, activity was light in commodity markets across London, New York and Chicago on position squaring before the holiday season. Global markets will be closed on Wednesday for Christmas.

Gold edged higher on Christmas Eve as last minute bargain hunters emerged to take advantage of the prices below the 1200 level pushing gold to close at 1203.30. Positive economic data have generally served to undercut gold. The Federal Reserve last week said it would begin to slowly scale back the size of its monthly bond buys, and expectations for a stronger economic recovery have underlined expectations the Fed will continue to slow the flow of monetary stimulus, which is seen as a negative for gold. The precious metal had soared in the wake of the financial crisis as the Fed undertook quantitative easing and other central banks engaged in aggressive stimulus measures. Gold remained under pressure Monday after data showed U.S. consumer spending rose a seasonally-adjusted 0.5% in November, the fastest pace since June. Personal income rose 0.2% in November. The consumption figure was in line with forecasts, while economists had penciled in a 0.4% rise in personal income.

Bears have been firmly in control of gold for much of 2013. The yellow metal soared in the aftermath of the financial crisis as the Federal Reserve and other central banks pursued quantitative easing and other extraordinary measures, sparking fears of inflation and currency debasement.

Futures markets closed an hour early and will remain shut on Wednesday for Christmas. U.S. economic data released Tuesday included durable goods orders, the U.S. house price index, new residential sales, and the Richmond Fed business survey. None of the data had a major impact on the markets. In other metal trading platinum rose $9.10, or 07%, to $1,336.50 an ounce, while palladium was down 20 cents to end at $695.45 an ounce.

Ho Ho Ho The Drop In Gold Prices Spurs Christmas Sales For Jewelry

Ho Ho Ho The Drop In Gold Prices Spurs Christmas Sales For Jewelry
Ho Ho Ho The Drop In Gold Prices Spurs Christmas Sales For Jewelry

Gold eased a bit again this morning as we are down to just a few more trading days of the year. Gold is trading right at the 1200 level down by $2.50 in the Asian session to trade at 1201.20. Gold is expected to close the year below the 1200 price point. Investors now expect a slow phasing out of the Fed’s bond-buying program though realize that tapering does not mean the end of central bank stimulus which has bolstered the rally in equities, with the Dow up 27 percent in 2013 and the S&P 500 gaining 30 percent.

The FOMC will probably cut its bond purchases by US$10 billion in each of its next seven meetings before ending the program in December 2014, according to the median forecast in a Bloomberg survey of 41 economists conducted on December 19. Interest rates are expected to stay near current historic lows through 2015. Although no one can predict what Ms. Yellen will do once she steps in next month, although she is from the Ben Bernanke School of monetary policy, she has her own opinions.

The coming days will offer several clues on the economy including the Chicago Fed national activity index and consumer sentiment, both on Monday, followed by the FHFA house price Index, new home sales, durable goods orders, and the Richmond Fed manufacturing index, due on Tuesday, and weekly jobless claims, on Thursday.

US markets will close early on the 24th, at 1pm in New York, and are closed on the 25th for the Christmas holidays. Trading volumes are expected to be light until the New Year. Jewelers around the world a predicting a record season for gold jewelry sales as demand continues to increase with the current price declines. Major retail jewelers such as Tiffany’s are showing a huge unexpected jump in sales.

Gold futures ended the week above the closely watched $1,200-an-ounce, gaining back some of their 3%-plus drop to three-year lows in the prior session. But it was the only positive day of the week, as another batch of strong economic data weighed further on prices. Gold prices in the futures market are likely to be range-bound as attraction for buyers, especially in Asia, could be dampened by fears of further drop in prices due to US cutting its stimulus program. Odds that gold will fall further have increased. Holdings in gold exchange-traded funds increased for the first time in seven weeks, though. Gold holdings in SPDR Trust, world’s biggest exchange-trade fund, increased to 814.12 tonnes.

Bearish bets on gold increased to 75,199 contracts, while bullish bets fell to 32,524 last week, according to US Commodity Futures Trading Commission. Rising bearish or short positions do pose a risk in that prices could rise if investors try to square them.

Silver continues to take a beating as the demand for precious metals wanes and the US dollar continues to build momentum. Silver gave up 123 points in the Asian session to trade at 19.330 while copper remained flat at 3.302. Palladium and platinum are both trading in the green to begin the week with Palladium at 701.60 recovering above the 700 level and platinum at 1332.00. All metals are expected to remain rangebound ahead of the holidays.

 

 

Gold Investors Run For The Hills

Gold Investors Run For The Hills
Gold Investors Run For The Hills

What can one say about gold as traders and investors run for the hills. Gold is trading this morning at 1195.10 up just about $1.00 but moving between small gains and losses. Gold did as expected after the Federal Reserve announced its plans to taper earlier than originally expected. The small $10 billion tapering was just the kick start for gold’s slide; the killer blow was the FOMC’s statement and upgrade of the current economic recovery. Gold was trading close to 1233 ahead of the Fed’s decision and immediately after actually climbed as traders reacted to the tapering without digesting the rest of the statement. The Fed’s upgraded growth for 2014 and 2015 and said that the economic recovery was moving at a quicker pace than expected. This was compounded when the Fed’s upgraded their projections for unemployment saying that unemployment was falling faster than expected.

The Fed on Wednesday said it would reduce its bond-buying by $10 billion next month to $75 billion, citing a string of upbeat figures pointing to a strong recovery. It added that it would likely take “further measured steps at future meetings” if the economy continues to improve while keeping interest rates a record lows “well past the time” the unemployment rate declines below 6.5 percent — its previous cut-off point before tightening monetary policy. The news sent the greenback surging as the prospect of fewer dollars sloshing around the financial system boosted demand.

In Thursday’s session gold rebounded 0.4 percent to $1,195.05 an ounce after earlier hitting a near six-month low of $1,185.30. The precious metal slumped 2.3 percent, and is down nearly 29 percent this year, heading for its worst annual decline since 1981. Investors have been selling gold futures and gold-backed ETFs this year as stocks have soared to record highs. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 3.90 tonnes to 808.72 tonnes on Thursday, the lowest in nearly five years.  Outflows from the top eight gold ETFs have totaled about 720 tonnes as investors channel more money to equities.  Prices for physical gold, including bars and coins, have fared better thanks to demand from investors in China.

The policy changes also suggest the Fed is becoming increasingly concerned about the threat of deflation. Inflation has been subdued all year and remains well below the Fed’s target level of 2%. Consumer prices, excluding food and energy, rose only 0.2% in November from October, according to government data. Gold is seen as a hedge against inflation since precious metals tend to hold value better than assets such as stocks and bonds. With no sign of inflation on the horizon, investors have little reason to own gold. Silver gained 42 points this morning diverging from the weakness in precious metals to trade at 19.228 as industrial and base metals climbed. A stronger recovery in the US means increased demand for production and manufacturing. Copper climbed to trade at 3.304 while platinum added $3.05 to trade at 1320.25 and palladium rose $2.70 to trade at 699.30.

 

 

Tapering Announcement Sends Metals Down After Roller Coaster Ride

Tapering Announcement Sends Metals Down After Roller Coaster Ride
Tapering Announcement Sends Metals Down After Roller Coaster Ride

There is an old market saying that goes “GOLD UP, DOLLAR DOWN, DOLLAR UP, GOLD DOWN”. Well that is the way the markets went. The dollar and gold went a bit crazy as the Fed’s announced a small but expected tapering of $10 billion. In the minutes after the announcement gold, the greenback and the euro went haywire, it was unclear exactly what was happening in the currency and commodities markets, but equities soared from the minute of the announcement and did not stop until the close. Trader pushed the Dow and the S&P to record highs. Gold on the other hand soared and then corrected and then climbed again to finally turnabout and head south. Gold is trading down $16.00 dollar this morning at 1219.00 after ending Wednesday at 1235 just about where it was before the Fed announcement. The killer for gold was not the small tapering as most speculators predicted and expected this it was the upward revision of GDP and the positive comments on the unemployment situation where the Fed said that unemployment was dropping faster than expected. It also said that inflation remained low but well under control taking away any demand for the precious metal.

Gold is a hedge against mismanagement of currency, and if the Federal Reserve is perceived to be doing a good job, then demand for gold will diminish,” said Aryan Capital Global Opportunities Fund lead portfolio manager Vedanta Mitanni. Gold initially weakened late Wednesday after the Fed said it would cut its pace of monthly asset buys to $75 billion from $85 billion. But the unexpectedly early and slight move away from quantitative easing wasn’t enough to cause any meaningful decline, at least in the immediate aftermath.

“Today’s announcement from the Fed is a welcome reflection of improved economic conditions in the U.S.,” said World Gold Council’s William Rhine. “We believe market participants will refocus on the underlying fundamentals of supply and demand, which remain positive.”

Taking cues from fall in gold prices along with strength in the US dollar, silver prices slipped around 0.8 percent yesterday. Further, declining trend in silver ETF holdings acted as a negative factor. The white metal touched an intra-day low of $19.62 and closed at $19.70 in yesterday’s trade/ Silver took the biggest hit this morning dropping 551 points to trade at 19.508. Copper eased just a few points to trade at 3.302 as the upward revision of US growth will increase the demand for copper in manufacturing and building. Copper gained 0.1 percent yesterday on the back of positive Building Permits and Housing Starts data from the US. Also, upbeat data from the Eurozone and UK supported gains. Further, decline in inventories by 0.4 percent to 384,950 tonnes acted as positive factor. However, strength in the DX capped sharp gains in the prices. China’s commodity supplier is working on plans to buy about 300,000 tonnes of copper and 100,000-150,000 tonnes of nickel in 2014 to take advantage of weak international prices, said three sources with knowledge of the matter.

 

Gold – Silver – Copper Are All Dealing With Lackluster Chinese PMI And The Falling USD

Gold - Silver - Copper Are All Dealing With Lackluster Chinese PMI And The Falling USD
Gold – Silver – Copper Are All Dealing With Lackluster Chinese PMI And The Falling USD

Gold was flat this morning moving between small losses and gains, as trading was very quiet, almost a hush as we ease toward the Federal Reserve meeting beginning tomorrow. Every trader, regardless of small retail traders, institutional traders, Hedge Fund and Pension Fund managers are at the edge of their seats waiting for the end of this movie, which is expected to be a cliff hanger. No one knows exactly what to expect. Gold is trading at 1234.90 up a few points while silver eased to 19.565 down by 40 points after disappointing Chinese manufacturing data hit the wires. Copper remains high above the 3.30 level but in the red by 4 points as the data from China is countermanded by the drop in the US dollar ahead of the FOMC gathering. It looked like traders were taking last minute positions, pushing the dollar back down after it climbed on Friday after strong economic data. Traders remain unsure as what to expect. The week of positive economic data would indicate that the Fed would begin to taper. Mr. Bernanke’s handover to Janet Yellen next month would offset this as he might want to leave this decision to Ms. Yellen. Fed speakers before the blackout all indicated that some sort of tapering might occur at this meeting. GDP soared this prior month to 3.6% while unemployment declined to 7.0% from 7.3% which really pushed the Fed’s into a corner. Inflation remains tame and PPI was a bit disappointing. Retail sales soared above expectations last week. Lastly, the compromise in Washington took care of the budget and the debt ceiling through 2014. What can traders expect on Thursday, no one really knows. Do you care to guess?

As we get closer to year end, traders are trying to book profits and were moving to higher risk assets pushing the stock markets to record level but as the FOMC grows closer they have moved to safety. Gold for 2013 is headed to end the year on a negative note. Blame it on the unending worries with regard to the QE taper that affected sentiments towards precious metals in the international markets or call it the effect of strict restrictions on gold supply in the Indian markets that impacted demand in the world’s top consuming country; overall, gold and silver got pushed into the territory of bears that refused to send the metals back to the bulls, at least in 2013. This year’s annual decline in gold prices will be the first in more than a decade.

Price trend for 2014 will be unfolded with clarity only after the Federal Reserve provides direction and indication towards the pullback in stimulus spending in its meeting scheduled for the 18th Dec’13. World markets are seeing a sense of caution as we approach the Federal Open Market Committee event.

Base metals and industrial metals ended last week on a positive note on the back of declining inventories and demand from China, but this morning’s disappointing HSBC PMI data will weigh on the metals group today, but should be balanced by the falling greenback.   As mentioned above silver and copper have declined this morning along with platinum which gave up $2.00 to trade at 1360.40 while there was a surprising rise in palladium adding 30 points to 717.20 but staying mostly flat following the tone set by gold.

Precious Metal and Industrial Metals Put In A Stellar Peformance

Precious Metal and Industrial Metals Put In A Stellar Peformance
Precious Metal and Industrial Metals Put In A Stellar Peformance

Gold had an incredible run on Tuesday as traders responded to the last public comments by Federal Reserve members on Monday evening. Gold climbed to trade above the 1260 price level and has eased to 1258.70 in the Asian session on Wednesday. Gold has rebounded from a five-month low on Dec. 6 to touch $1,268 yesterday, the highest price since Nov. 20, as signs of increased demand in China and the dollar’s weakness countered expectations that the Federal Reserve is set to pare stimulus. Gold prices gained 2% on yesterday supported by a weaker dollar and short coverings ahead of the FOMC policy meet next week. A pickup in physical demand from China and increased volumes on the Shanghai Gold Exchange also supported gold prices. The US Congress has announced a budget deal for spending cuts and if approved by the Senate, it would end the possibility of another government shutdown in January. Traders can expect Gold prices to move higher today on technical buying and a weaker dollar would also support prices.

Additionally, a declining trend in SPDR gold holdings also could not refrain from prices to trade in positive territory. Funds have been buying to cover short positions ahead of the Federal Reserve’s policy meeting next week. A break above strong resistance at $1,250 an ounce also triggered heavy buy orders. Gold touched a high on Tuesday of 1267 before easing to close at 1260.30. Silver followed the trend moving above the $20 price also and eased along with gold this morning as traders booked profits as silver gave up 10 points to trade at 20.305.

Elsewhere in metals trading, January platinum slipped $5.40, or 0.4%, to $1,383.30 an ounce, while March palladium dipped $1.20 to $737.25 an ounce. High-grade copper for March delivery was flat at $3.26. Copper futures rose to a three-week high on Tuesday, after data showed industrial production in China increased in line with expectations last month. China 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 USD3.261 a pound during European morning trade, up 0.1%. Comex copper prices raised to a session high of $3.264 a pound earlier, the strongest level since November 24. 

Gold Is Green This Morning

Gold Is Green This Morning
Gold Is Green This Morning

Gold climbed steadily this morning adding $6.50 to trade at 1240.70 as traders now focus on the upcoming FOMC meeting that will conclude on December 18th. There is little data due over the next week as we enter the middle of the holiday month. With the Fed meeting just 7 days away Federal Reserve members will begin this blackout period. There will be no more speeches or comments by the Fed until the conclusion of the meeting. Expectations of a cutback in bond-buying — tapering, in the lingo of the market — grew even stronger in the wake of Friday’s release of robust November hiring data. There remains a good bit of uncertainty what the Fed will do next week because officials who have been supporters of the effort haven’t given any explicit signals what will happen. 

Much of what Mr Bullard said in the text of a speech prepared for delivery before a group in St Louis supports recent remarks of his. The official has long argued that Fed policy is data dependent. Mr Bullard has also underscored that even as the economy’s outlook has improved, inflation continued to undershoot the Fed’s 2 per cent target, and central bankers don’t have a good explanation for why this is happening. Mr Bullard suggested a way the Fed could balance the conflicting performance of the job market and inflation data. “Recent labor market results seem to suggest that coming months will show continued labor market improvement,” Federal Reserve Bank of St Louis President James Bullard said. “Based on labor market data alone, the probability of a reduction in the pace of asset purchases has increased.” 

Gold got off to a shaky start on Tuesday after gaining 1 percent in the previous session, as investors turned their attention to a Federal Reserve policy meeting next week that could provide clues on the outlook for the bank’s stimulus. Markets worry the Fed could decide to begin cutting its $85 billion monthly in bond purchases at the December 17-18 meeting due to recent strong economic data. The stimulus has supported gold prices as it boosts the metal’s inflation-hedge appeal. Gold has lost about a fourth of its value this year on fears the bond purchases would be scaled back.

In comments made on Monday Dallas Fed President Richard Fisher said he will urge his colleagues at the Fed’s meeting next week to begin trimming their bond-buying program immediately. Silver took its clues from gold to gain 87 points rising to 19.788. Global sentiment and the weak US dollar helped industrial and base metals to see gains this morning also with copper climbing to 3.261 well above its recent trading range after rallying on Monday. Platinum gained $1.60 to trade at 1374.55 while palladium added $1.30 to trade at 737.80. The overall metals market and the entire commodities complex is trading in the green this morning.  The US dollar has dropped to 80.06 down by 10 points and looks like it will fall below the 80 mark in today’s European session.

Gold Under The Influence Of FOMC Tapering

Gold Under The Influence Of FOMC Tapering
Gold Under The Influence Of FOMC Tapering
Gold is trading at 1228.00 down by $1 this morning after Asian traders digest US, Chinese and Japanese data. Fed tapering is the word on every traders mind as traders take side, pro tapering and no tapering. Many traders believe the strong US data from last week with the significant drop in unemployment to 7% would indicate that the FOMC will begin a to taper a small amount leading to larger tapering in early 2014. The offside of that is the overall global reaction to “tapering”. Many traders believe that Mr. Bernanke would rather hand off this decision to Janet Yellen when she takes over the reins in January. Silver also eased this morning at 19.508. On Friday Spot silver gained 0.3 percent to $19.566 an ounce. Platinum rose 0.2 percent to $1,361.88 an ounce, climbing for the first time in three days. Palladium was little changed at $734.38 an ounce. Gold slumped 27 percent this year, tumbling to a 34-month low of $1,180.50 in June, on speculation the Federal Reserve will start scaling back asset purchases as the economy improves. The Federal Open Market Committee will probably begin reducing the $85 billion in monthly bond buying at a Dec. 17-18 meeting, according to 34 percent of economists surveyed on Dec. 6 by Bloomberg, an increase from 17 percent in a Nov. 8 poll.

A marketing expert specializing in precious metals said on Sunday that gold prices in the medium and long terms have witnessed an upward trend, noting that the current fluctuating prices represent bottom prices compared to the prices of the first and second quarter of the New Year. Sabaek Al-Kuwait Executive Director Rajab Hamid told Kuwait News Agency (KUNA) gold has witnessed staggered prices at the end of last week with the release of the data of the US labor market, falling to the lowest level to $1,210 per ounce. Hamid said that expectation may be difficult to analysts due to the conflicting views on when the policy of quantitative easing relied upon by the ounce of gold in the previous years would be reduced or eliminated.

Prices may rise modestly in the near-term as gold bulls keep alive the prospect of a later taper since the data has to signal growth that’s strong enough to allow the Fed to cut bond purchases. The short-term positive view for gold is reinforced by data from IG Markets showing 76 percent of clients with open positions expect gold prices to rise. Despite the metal’s apparent resilience in the face of an upbeat jobs number, gold bulls are circumspect.

Tracking a weak global trend, copper prices fell by 0.18% to trade at 3.233 down by 10 points in futures trade today as speculators offloaded positions.  Analysts attributed the fall in copper futures to weak global cues as investors weighed signs of improvement in the US economy against concern the Federal Reserve may start trimming its stimulus sooner than estimated.

 

Industrial and Base Metals Ease While Precious Metals Tumble

Industrial and Base Metals Ease While Precious Metals Tumble
Industrial and Base Metals Ease While Precious Metals Tumble
Gold is trading at 1225.20 easing $6.70 this morning while silver is down 220 points at 19.35. The US dollar has recovered after touching a 5 week low to trade at 80.36. Gold steadied on Friday after choppy trading in the previous session and was headed for a weekly decline as improving U.S. economic data raised fears of an early end to monetary stimulus. Prices fell by as much as 2 percent on Thursday after data showed the U.S. economy grew faster than initially estimated in the third quarter. Gold is headed for a 2 percent weekly drop after falling to fresh five-month lows earlier in the week.

On Thursday the US Commerce Department said the world’s biggest economy grew 3.6 percent in the third quarter, well above the 3.0 percent predicted by analysts. Also, the Labor Department said first-time claims for unemployment benefits, a sign of the pace of layoffs, fell below 300,000 last week. The upbeat figures are the latest pointing to a pick-up in the US economy, raising the prospect of the Fed cutting its monetary easing scheme this month instead of early next year.

 The upcoming labor report is not a definitive signal for a near-term or more distant Taper decision. Rather, this is a big-ticket item that can sway the balance of speculation – arguably a more effective market mover. For splashy headlines and a kneejerk risk response, the NFPs (nonfarm payrolls) number will be the first look. Yet, the real impact comes through the same data that the central bank monitors for its own policy making. The jobless rate – expected to tick down to 7.2 percent.

As expected, gold would make little effort to upgrade its Wednesday rally into a lasting bull trend. With the European central bank meetings ahead of it at the time and now the November US payrolls, there is little room for speculators to fight prevailing trends with a chance that the Fed will see its Taper decision being made for it in key data. The low June close – the lowest in three years – is $1,200. We are little more than $25 off that level.

Industrial metals and base metals continue to trade in the red this morning with copper the only exception remaining flat at 3.22. Platinum eased by $3.40 while palladium fell by $2.50 to trade at 7.3330. Copper swung between gains and losses as investors weighed signs of improvement in the U.S. economy against concern the Federal Reserve may start trimming its stimulus sooner than estimated. Nickel rose for a third day. Yesterday, nickel touched the highest since Nov. 11 and tin climbed to a five-week high after Indonesia, the top exporter of tin and biggest producer of mined nickel, said a plan to ban ore exports will proceed next month.

Federal Reserve Tapering Continues To Plague Commodities

Gold BNSGold gained back $1.30 this morning as traders once again took advantage of low prices to buy up the commodity as the US dollar trades at 80.63 making the shiny metal more attractive to foreign buyers. Gold is expected to sit tight through the barrage of US data due on Wednesday and Thursday and to pay little attention to the Bank of England and the European Central Bank meetings on Thursday. All metal traders will be focused on it Friday’s nonfarm payroll release. Good jobs numbers might encourage the FOMC to begin tapering earlier than expected but both Mr. Bernanke and Janet Yellen has said that tapering would not come until 2014. Mr. Bernanke earlier this year tied monetary policy to unemployment levels, and Ms. Yellen said that she needs to see growth. The US will release GDP numbers this week but they are not expected to be strong enough to move the Fed.  Silver showed a stronger recovery adding 108 points to trade at 19.172 remaining well below its average trading range.

Industrial and base metals saw some supportive data this week primarily from China. The purchasing managers index (PMI) for China’s non-manufacturing sector stood at 56 percent in November, down from 56.3 percent for October, according to official data released on Tuesday. A PMI reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction. The non-manufacturing PMI tracks service, construction, software, aviation, railway transport and real estate among other sectors, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP). China’s manufacturing PMI was 51.4 percent in November, the same as that in October and the highest for 19 consecutive months, showed NBS figures on Sunday. Eurozone combined and individual PMI data also printed in the green but had little effect on metals.

Copper is trading this morning at 3.186 adding 24 points after falling well below its average trading range. The weak US dollar is helping prices but overall there is little supportive sentiment. Analysts said weak global cues as signs the US economy is strengthening stoked speculation that the Federal Reserve may soon start tapering its stimulus, mainly influenced copper prices at futures trade. Yesterday, copper fell on concerns over growing supplies of the metal.

Palladium and Platinum are both trading in the red this morning with platinum slipping by #2.40 to 1355.35 and palladium down by 10 cents at 717.00. China’s manufacturing activity in private and export-oriented companies grew at a slightly slower pace in November while that in state-owned enterprises was flat, a survey showed yesterday. The results pointed to a stable growth momentum in China’s manufacturers, according to analysts.

 

Gold and Silver Take Big Tumble And Look To Continue Down

Gold and Silver Take Big Tumble And Look To Continue Down
Gold and Silver Take Big Tumble And Look To Continue Down
Gold fell to the lowest since July after signs of a strengthening U.S. economy fueled speculation that the Federal Reserve is ready to slow the pace of its monetary stimulus. Gold is trading at 1219.70 this morning as it continues to ease after yesterday’s tumble. Precious metals dropped on Monday, with investors jittery ahead of key U.S. data this week that could provide clues on when the Federal Reserve will begin scaling back its monetary stimulus. Silver is following closely on the heels of gold easing by 94 points in the Asian session to trade at 19.195. Gold lost 27 percent this year, touching a 34-month low of $1,180.50 in June, on speculation the Federal Reserve will start paring asset purchases that drove a 12th annual advance in 2012 as the economy improves. Data yesterday showed that while U.S. manufacturing unexpectedly accelerated in November at the fastest pace in more than two years, retail spending fell on the weekend after Thanksgiving for the first time since 2009.

Gold prices booked their worst November since 1978, as a brighter economic landscape fanned fears of reduced stimulus efforts by the Federal Reserve.  Gold prices dropped 5.5 per cent in November. The declines help put gold on track to end 2013 in negative territory, disrupting a 12-year winning streak that saw the precious metal top price records

In other gold news, Gold output in Australia, the world’s second-biggest producer, expanded for a second quarter in the period ending in September because of higher ore grades, according to mining consultant Surbiton Associates. Sri Lanka scrapped a 100 percent surcharge on gold imports and cut import duty with immediate effect, officials said on Friday, after measures imposed in mid-2013 to curb purchases of the metal from abroad halted them completely in the third quarter.

Reports this week may show that the U.S. is on track for the biggest annual gain in payrolls since 2005 before the Fed’s next gathering Dec. 17-18. Minutes of the last meeting released on Nov. 20 signaled that policy makers expected an improving economy to warrant trimming debt purchases in coming months. 

Platinum added 0.3 percent to $1,347.55 an ounce, after declining to $1,340.15, the lowest since July 8. Palladium added 0.3 percent to $712.65 an ounce, snapping two days of losses. Industrial metals extended last month’s losses on Monday as upbeat U.S. economic data spurred renewed fears about the Federal Reserve trimming monetary stimulus and the dollar strengthened. Copper gained 3 points to trade at 3.175 against the strong US dollar. Copper fluctuated between gains and losses, trading near a one-week low as signs the U.S. economy is strengthening stoked concern that the Federal Reserve may soon start tapering its stimulus. The LME index of six industrial metals fell 13 percent this year amid forecasts for surpluses in materials from copper to aluminum. On the LME, nickel slid today, while aluminum, lead and zinc were little changed.