Gold Trading Without Direction Or Conviction

Gold Trading Without Direction Or Conviction
Gold Trading Without Direction Or Conviction
Markets are calling it a positive day for gold. Some headlines read “Gold marks second straight session of gains: but in fact gold did absolutely nothing. It simply meandered from here to there with no direction at all on Tuesday and is doing the same this morning. Gold is trading at 1294.40 after opening at 1293.80 in the morning, so it was technically an up day. Precious metals were holding ground within a tight trading range as traders looked to speeches this week from various Federal Reserve officials for clues on the metal’s next direction.  Two Federal Reserve officials give speeches today—Philadelphia Fed president Plosser and New York Fed president Dudley. Traders are awaiting Wednesday afternoon’s release of the minutes from the latest Federal Reserve Open Market Committee (FOMC) meeting.

There was virtually no data on Tuesday and little in the way of speeches of merit. German producer prices fell 0.1% in April and were down 0.9% year-on-year, it was reported Tuesday. The readings were lower than expected and add yet more concern of deflationary price pressures gripping the European Union. The data is another clue that the European Central Bank will move to further ease its monetary policy in June.

The Russia-Ukraine crisis has not gone away, but there has been no major, fresh news from the region in a couple weeks. The Ukraine holds a presidential election on Sunday. Traders have grown bored with the news and the situation.

gold may 20

The World Gold Council reported that demand for gold bars and coins dropped by 39% in the first quarter of this year, compared with the same time last year. India is the major reason for the drop, said the WGC, mainly due to government restrictions on gold imports. While Chinese imports also tumbled. The mainland’s demand for gold fell 18 per cent in the first quarter of the year as investors bought fewer bars and coins, offsetting record interest in jewelry, the World Gold Council said. Purchases declined to 263.2 tonnes, the London-based council said yesterday. While jewelry consumption rose 10 per cent, demand for bars and coins sank 55 per cent, accounting for about 40 per cent of the global decrease.

Silver took its cues from precious metals but bounced a bit higher as traders took advantage of the low prices to buy up the shiny white metal. Silver is trading at 19.478 on Wednesday morning. Copper on the other hand traded in the red as traders booked profits after copper touched a record high earlier in the week. Copper still remains well above its trading range at 3.134. Chilean market experts surveyed by the Chilean Copper Commission have cut their outlook for the 2014 copper price to $3.07, down 7 cents from the last survey released in October, Cochilco said Tuesday.  Chile is the world’s largest copper producer and forecast to produce 6 million mt this year. The Cochilco survey comes a day after Chilean Finance Minister Alberto Arenas said the government had cut its copper price forecast to $3.05, from $3.25 predicted in September.

Metals & Markets Mixed Up Monday

Metals & Markets Mixed Up Monday
Metals & Markets Mixed Up Monday
On Friday the markets had a lack of direction throughout much of the session, US stocks moved to the upside in the latter part of the trading day on Friday. The upward move seen late in the trading session came as some traders looked to pick up stocks at somewhat reduced levels following the steep losses posted on Wednesday and Thursday. A mixed batch of U.S. economic data contributed to the choppy trading seen for most of the day, with traders weighing an upbeat housing report against disappointing consumer sentiment data. Meanwhile, the European stocks were mixed Friday, with German shares lagging behind other markets thanks to concerns about global demand for industrial goods.

Friday’s sentiment carried into the Asian markets this morning as the new week begins. Asian markets are trading on a mixed note today on the back of favorable economic data from Japanese economy supported an upside in the markets. While on the other hand, mixed economic data from the US on Friday acting as a negative factor.

us dollar index mondayThe US Dollar Index gained around by 0.2 percent in the last week on the back of rise in risk aversion in market sentiments in early part of the trade which led to increase in demand for the low yielding currency. Further, favorable economic data from the country supported an upside in the DX. The currency touched a weekly high of 80.41 and closed at 80.11 on Friday and is trading in the red this morning at 80.08.  

US Building Permits increased to 1.08 million in April as against a rise of 1.0 million in March. Housing Starts gained to 1.07 million in last month from 0.95 million in March. Prelim UoM Consumer Sentiment declined by 2.3 points to 81.8-mark in May with respect to 84.1-level in April. Prelim UoM Inflation Expectations remained unchanged at 3.2 percent in the current month.

Today there is a void of data, and traders will be looking closely for reasons to trade. Gold this morning gained $2 as traders took advantage of the slight decline in the greenback and the drop in gold at the end of last week to buy up the commodity on the cheap. Gold is trading at 1295.40 as traders grow bored with the Ukraine situation gold is likely to continue to decline this week. A lot will rely on the Federal Reserve minutes due on Wednesday. The price of gold rose by 0.45% last week; conversely, the average price reached 1,296.70 which was 0.02% above than last week’s average rate. Gold ended the week at 1,293.40. The price of silver also increased by 1.1%; further, the average weekly rate was 19.51 which was 0.90% above last week’s rate.

Gold has advanced 7.7 percent this year in part as increasing tension in Ukraine fueled haven demand. In Vietnam, China is evacuating its citizens as Vietnamese authorities thwarted anti-China protests after violent demonstrations resulted in two deaths and damage at factories. The violence was spurred by anger over a Chinese oil rig in disputed waters.

gold silver monday

Assets in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, were at 781.98 metric tons on May 16 after dropping to 780.46 tons on May 12, the lowest since January 2009. Platinum was at 1,463.25 from 1,464.94, after climbing to 1,486 on May 14, the highest price since March 7. Palladium traded at 815.35 after reaching $829.25 on May 14, the highest level since August 2011. Platinum and palladium’s gains follow their biggest weekly gains in six weeks. Impala Platinum described as “devastating” the impact on its employees of a 16-week strike at its main South African operation in Rustenburg and said it had lost more than $500 million in revenue.

platinum metal monday

Metals Markets Mixed Controlled By Russia & China

Metals Markets Mixed Controlled By Russia & China
Metals Markets Mixed Controlled By Russia & China
Precious metals continue to be supported by geopolitical tensions in the Ukraine as violence continues to spread and President Putin underhandedly manipulates the situation. On the surface he seems to be trying to contain the situation but discretely he continues to fuel the flames. Gold remains close to the 1300 price trading on Friday morning at 1297.40 remaining trapped in a fairly tight range as global data continues to support worldwide recovery. The main point of contention remains the eurozone where GDP missed expectations which will force the ECB to add stimulus at its June meeting. Silver is taking cues from gold adding 29 points to trade at 19.513, while platinum follows the leader adding $3.15 trading at 1471.65.

gold silver friday

Good economic data released from the US and spot gold prices trading below the $1300 mark led to decline in prices. New applications for U.S. unemployment benefits hit a seven-year low last week while consumer prices in April recorded their largest increase in 10 months. Holdings in exchange-traded products backed by gold have dropped to the lowest since 2009. Some investors lost faith in the metal as a store of value after the Federal Reserve cut monetary stimulus. Taking cues from weakness in gold prices even spot silver prices declined by around 1.3 percent. Besides, weakness in the base metals complex also exerted downside pressure on prices. Base metals on the LME traded on a negative note yesterday taking cues from mixed economic data from the Eurozone. Also, mixed global market sentiments exerted downside pressure on prices. However, positive manufacturing data from the US coupled with decline in inventories cushioned sharp downside in prices. Copper is trading at 3.148 recovering a bit of Thursday’s decline while palladium added $3.80 over strikes in South Africa. Palladium is trading at 815.30. Despite a recent recovery in London Metal Exchange copper prices, market analysts were still bearish this week on the metal’s price for the rest of this year, based on factors such as a surge in supply and a weak Chinese construction sector.

copper friday

Analysts at Goldman Sachs forecast copper prices would sink to $6,200/mt by the end of the year, compared with a price at $6,845/mt as of early Wednesday trading. “In particular, analysts believe [Chinese] copper-intensive construction completions growth is set to remain weak for the rest of 2014, given the already weak new [housing] starts data,” the analysts said Tuesday in their Commodity Watch report. “Looking further ahead, any continued weakness in new starts would have bearish implications for completions in [the second half of 2015] and 2016.

Gold Climbs On Ukraine On Going Tensions

Gold Climbs On Ukraine On Going Tensions
Gold Climbs On Ukraine On Going Tensions
Gold is trading at 1304.90 down just a buck as traders are once again focused on tension in the Ukraine. Earlier in the week the market seemed to get bored with the situation and gold fell below the 1280 mark but tensions climbed after several bloody days of violence. President Putin seems to use one hand to calm tensions and another to turn up the pressure. His end goal remains a bit unclear. Silver is marching right behind gold easing just 8 points but remaining strong at 19.767 along with Platinum which is trading at 1474.45. Gold traded near a one-week high as investors weighed the conflict in Ukraine against the outlook for the U.S. economy and further reductions in stimulus. Palladium dropped from the highest level since August 2011.

According to Bloomberg Gold has advanced 8.7 percent this year partly on tension between Ukraine and Russia. Russian Foreign Minister Sergei Lavrov said Ukraine is sliding into a civil war that may invalidate elections, as Ukrainian leaders and their international allies blamed Russia for the violence. Bullion has rebounded from last year’s 28 percent drop even as the Federal Reserve started to trim stimulus as the U.S. economy recovers. Janet Yellen has once again suggested that the economy continues to need help regardless of the strength of the recovery until all sectors are doing well and that the Fed intends to continue its support.

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Platinum for immediate delivery fell 0.3 percent after advancing to $1,486 yesterday, the highest since March 7. Lonmin Plc will keep its platinum mines in South Africa open for a second day in an effort to break a 16-week strike even after many workers were prevented from reporting for duty yesterday.

Copper along with base metals and industrial metals are all trading in the red. Copper is at 3.151 down a few pips but remains near recent highs. Analysts believe the buying effect in the metal may remain elevated today while the gains could be minimal. This morning copper is seen trading slightly below the previous day’s close which could be due to weak Asian markets. Copper output in China, biggest consumer, was 584,000 mt in April, according to data from National Bureau of Statistics. Inventories of refined metal tracked by the LME have risen 6.6 percent in 2014, belying concern that a ban on raw ore exports by Indonesia would rapidly drain supplies. Ore stockpiles in China are sufficient for the biggest user of industrial metals to keep making nickel pig iron, a low-grade alternative to refined metal, through August, according to Beijing Antaike Information Development Co.

Metal Markets Reflecting The Economic Recovery

Metal Markets Reflecting The Economic Recovery
Metal Markets Reflecting The Economic Recovery
Tuesday saw the US dollar rebound and gather momentum as sentiment shifted with the Dow and S&P hitting records. Precious metal traders were spooked by the shift in the markets and dumped the shiny metal. Gold prices ended the North American session modestly lower Tuesday. The metal got an early lift from a U.S. retail sales report that showed luke warm growth and did missed market expectations. However, the modest gains were eroded by the recent sharp rebound in the value of the U.S. dollar against the euro after lackluster confidence data for the eurozone and Germany hit the news. Gold was last down $2.40 at 1,293.40. Wall Street was up slightly after both the Dow Jones and the Standard & Poor’s 500 Index rose to intraday record highs earlier in the session.

The Russia-Ukraine situation has not changed much since Sunday’s vote as the market place views it.  While tensions are still high in the region, traders and investors have become lackadaisical on the matter. The closely watched German ZEW economic expectations index was released Tuesday and saw confidence decline in May for the fifth month in a row, at 33.1 versus 43.2 in April. The German Bundesbank on Tuesday threw its support behind a likely upcoming move by the European Central Bank to ease its monetary policy. Investor wariness was already showing, with the SPDR Gold Trust, the world’s top gold-backed exchange-traded fund, recording an outflow of 2.39 tonnes to 780.46 tonnes on Monday, the first outflow since May 2.

Gold(15 minutes)20140513140916

Silver finished at 19.55 an ounce, up less than half a cent. Platinum ticked up 1 percent to end at 1,456 an ounce and palladium increased 1.1 percent to 817.30 an ounce, while copper settled at 3.136 a pound, down more than a penny, or 0.4 percent. Platinum and palladium each rose 1 percent on Tuesday on the back of lingering supply worries as South Africa sent more police to the strike-hit platinum belt to protect miners after four were killed returning to work over the weekend. The four-month strike in South Africa, the longest and most costly bout of industrial action in the world’s top platinum producer, has halted nearly 40 percent of normal global platinum production.

Copper eased on Tuesday after reports last week of strong buying from China. Copper had topped the 3.16 price late last week. The government announced reforms Saturday designed to strengthen bond issuance by developing various types of bonds to meet different investors’ needs. It also urged development of new financial derivatives and increased foreign investment. “The state reforms move has boosted market players’ confidence, so [it is] lifting copper prices,” said Jack Yeung, a business professor with City University of Hong Kong, adding that copper prices would likely rise further this week. Chinese industry analysts said this year’s devaluation of the yuan has hampered imported copper trade and tightened spot supply.

Copper Outshines Gold and Silver On Chinese Demand

Copper (1) BNSGold declined in the Asian session this morning to trade at 1293.50 as traders remain uncertain as geopolitical tensions support prices and a recovering global economic situation weighs on prices. The US economic recovery is now at full steam along with the UK. The eurozone seems to moving slowly in the right direction while China undergoes economic restructuring. Silver followed cues from gold to trade at 19.475 down by 68 points and platinum are down $2 to 1437.25.

On Monday gold halted a four-session slump, finding support from turmoil in Ukraine and expectations that India may soon ease restrictions on gold imports. Copper prices were also a standout, with prices marking their highest close in more than two months in the wake of a new blueprint for capital-market reforms in China, the world’s biggest consumer of the metal. Gold for June delivery increased 0.6% to end at 1,295.80 an ounce on Comex after tapping a high of 1,304.50 in electronic trading. Prices had tallied a loss of about 1.7% in the last four trading sessions.

Gold has rallied 7.7 percent this year, boosted in part by haven demand as tension rose between Ukraine and Russia. Rebels in eastern Ukraine said they’re seeking to join Russia after disputed referendums as the government in Kiev was handed a deadline to pay for Russian gas to prevent a supply cutoff.

The dollar climbed to the highest in a week versus the yen and traded near the strongest in a month against the euro before data today forecast to show U.S. retail sales rose for a third month. Gold fell 28 percent last year, the biggest annual drop since 1981, on speculation the Federal Reserve would reduce monetary stimulus as the U.S. economy recovers.

Assets in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, fell yesterday to 780.46 metric tons, the lowest since January 2009.

Copper gave up a few points this morning to trade at 3.130 after outperforming on Monday. Industrial metals shined as China continue to buy up surplus metals at record rates. n late afternoon New York trade on Monday July copper changed hands nearly 2% or 6c a pound higher on optimism about demand from China and receding fears about supply growth. Copper futures in New York in late afternoon dealings were last trading at a two-month peak of 3.1420 a pound after earlier in the day hitting a high of 3.1555. The copper price has now recovered 6% since falling to near four-year lows in March although the metal is still down from $3.37 at the outset of 2014.

There was no fresh news out of China, responsible for more than 40% of global demand, on Monday that could have sparked the rally bar a fresh commitment from Beijing to push through capital market reforms announced earlier this year. Optimism about the market-friendly measures was also somewhat dampened by Chinese President Xi Jinping saying that slower growth is the “new normal” for the country.


Gold, Silver, Platinum & Palladium Diverge

Gold, Silver, Platinum & Palladium Diverge
Gold, Silver, Platinum & Palladium Diverge

Gold remains well below the $1300 level supported only by geopolitical tension in the Ukraine keep traders in risk off mode. Gold is trading between small gains and losses after assurances from Federal Reserve Chair Janet Yellen, that the Fed would keep interest rates accommodative for a long time. Gold is trading at 1291.00 this morning after closing at 1287 on Thursday. Silver is trading at 19.173 up by 35 points on Friday morning. Platinum eased by $3.50 to trade at 1434.75 as the precious metals diverge.

Gold edged up yesterday after the previous day’s more than 1 percent drop as investors digested comments by Federal Reserve Chair Yellen that the central bank is in no rush to reduce the size of its balance sheet. Prices of the yellow metal were also supported by geopolitical tensions as Pro-Moscow separatists in eastern Ukraine ignored a call by Russian President Vladimir Putin to postpone a referendum on self-rule, a move that could lead to war.

Gold was pressured by technical selling and the dollar’s strength after European Central Bank President Mario Draghi’s comments that the bank may act to stem falling inflation at its June meeting knocked the euro. The euro is flat at 1.3840 after moving over 150 points on Thursday. ECB president Mario Draghi said that the institution is now “comfortable with acting next time”, following his staff’s latest projections of the economic climate, which will be published early in June. The comment was unusually open in comparison to the ECB’s usual reticence to commit to future decisions. Many analysts are now indicating that the ECB will cut rates at the least, perhaps driving the deposit rate to negative levels.


Traders said sentiments dampened after gold fell the most in three weeks in overseas markets on speculation that the Federal Reserve would further curb monetary stimulus as the US economy recovers, reducing demand for the metal as an alternative investment. U.S. Labor Department said Thursday the initial jobless claims dropped by 26,000 to a seasonally adjusted 319,000 in the week ended May 3, the lowest level in a month. Drop in weekly U.S. jobless claims has triggered the rise of U.S. equities and hindered gold’s appeal as a safe-haven reserve.

Thanks to Federal Reserve Chair Janet Yellen’s upbeat comments on the economy, gold has lost nearly 22 dollars in the past three sessions. Some market analysts believe that U.S. economy is on solid ground and that the job market is on an upswing. But gold still has its chance. Market analysts believe that geopolitical tensions in Ukraine could be a life line for gold bulls to take the advantage.

Physical demand in Asia has been muted in recent weeks and investors are hoping lower prices would lure consumers, especially in top buyer China.

In mining news, the Inter-American Commission on Human Rights has rejected a request from activists in Peru to recommend revoking Newmont Mining Corp’s licenses to build a massive gold mine, Peru’s justice ministry said. Impala Platinum, the world’s second-largest producer of the metal said it would ask its striking South African employees to vote by text message this week on its latest wage offer and whether they wanted to return to work.

Chinese Trade Data Surprises To The Upside

Chinese Trade Data Surprises To The Upside
Chinese Trade Data Surprises To The Upside
Gold moved between small losses and gains this morning after taking a major tumble on Wednesday after Janet Yellen’s comments assured traders as sentiment shifted to risk on trading. Even though problems in the Ukraine continued Russian President Putin is now aggressively trying to turn the down the temperature as violence continues.  Speculators were buoyed by comments from Russian President Vladimir Putin. He urged separatists in Eastern Ukraine to delay a vote on independence and said, in a significant shift, that the Ukrainian election to be held on May 25 was a step in the right direction — but talks should be held with separatists first. Finally, Putin said that Russian troops had pulled back from the Ukrainian border.

Gold is trading at 1290.20, while silver gave up 54 points to trade at 19.288. Platinum gained a few dollars to trade at 1438.75 dealing with strikes and other problems outside of precious metal safety. Palladium gained $2.70 after a strong Chinese import export release. Palladium is trading at 799.70. Yesterday commodities were mixed again — metals finding themselves offered, with gold down $18.5 to $1290 on the Fed’s more upbeat comments on the economy and as Russian troops pulled back from Ukraine. Silver fell 1.5 per cent and copper was down 0.8 per cent.

gold may 8

Janet Yellen noted in comments to the Congressional Joint Economic Committee that “many recent indicators suggest that a rebound in spending and production is already under way”. However she was less enthusiastic about the housing market, noting that recent indicators showed a flattening out could prove to be permanent. At the same time Yellen assured everyone that rates would remain low for a very long time yet. She wisely dropped her previous comment that rates would rise in six months, noting when asked when rates would rise, “I’m afraid I can’t give you a timetable”. Gold fell 28 percent in 2013 to end a 12-year rally, on expectations the Fed would scale back asset purchases. Chair Janet Yellen yesterday told U.S. lawmakers in Washington that the world’s largest economy still needs stimulus even as data supported the outlook for faster expansion this year. The central bank has announced cuts to bond-buying at each of the past four meetings.

Gold has rallied 7.4 percent this year in part as tension in Ukraine spurred haven demand. Russian President Vladimir Putin called on separatists in Ukraine to postpone a vote for autonomy and said he’s pulled Russian troops from the country’s border after weeks of tension, as the U.S. said there’s no sign of a withdrawal.

Copper gained 5 points to trade at 3.041 after Chinese data this morning caught traders off guard with a surprise in exports and imports. Overseas shipments increased 0.9 percent from a year earlier, when figures were inflated by fraudulent invoicing, data from the Beijing-based customs administration showed today. That compared with the median estimate for a 3 percent drop in a Bloomberg News survey of analysts. Imports gained 0.8 percent, leaving a trade surplus of $18.46 billion.

metals may 8


Precious Metals React To Ukraine While Industrial Metals Watch China

Precious Metals React To Ukraine While Industrial Metals Watch China
Precious Metals React To Ukraine While Industrial Metals Watch China

Gold and silver diverged this morning as gold gave back a bit of Monday’s gains to trade at 1307.60 as prices moves along with tension in the Ukraine and traders prepare for Janet Yellen’s two days of testimony before US lawmakers. Silver added 4 points to trade 19.575. Markets seem totally uncommitted and gold is expected to return to its downtrend as soon as tensions ease in Kiev. Chinese Services data along with Australian retail sales missed expectations this morning but have had little impact on the metals markets. Palladium is down $2.80 at 813.70 and platinum is virtually flat moving between small losses and gains at 1448.35. Precious metals eased on Tuesday, surrendering early gains as weak physical demand made investors wary about the outlook, though tensions in Ukraine and weakness in the U.S. dollar and Wall Street stocks lent support.

gold may 7

SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings stood at 782.85 tonnes unchanged from previous business day while holdings of the largest silver-backed exchange-traded-fund (ETF), New York’s iShares Silver Trust SLV, rose to 10,320.26 tonnes unchanged from previous business day.

China’s demand for gold bars fell nearly 44 percent in the first quarter of 2014 from year ago, even as total gold consumption edged up about 0.8 percent during this period, the China Gold Association said on Wednesday. China yielded 96.499 metric tons (tonnes) of gold in the first quarter of 2014, up 7.33 percent year on year, data from China Gold Association showed on Tuesday.

Gold prices moved down and closed flat by 0.05% as weaker dollar internationally and poor demand from Asian economies kept the prices down, ongoing tensions in Russia helped supporting prices.

Both sides have been burying their dead as Ukraine slides further towards war, with supporters of Russia and of a united Ukraine accusing each other of tearing the country apart. Physical demand in top buyer Asia and elsewhere has been weak due to the volatility in prices. Safe haven bid in gold has kept the prices intact. Traders can expect Gold prices to remain in a range to down for the day as poor physical demand from Asia and ongoing unrest in Russia can keep the gold prices in range.

copperIndustrial metals edged up to near its highest in two months, supported by steady local demand in China as markets returned from a two-day holiday of the U.S. economy gaining speed.  Copper is in the green this morning at 3.057 but doesn’t seem to be making much progress. Copper prices moved in a range to down for the day as ongoing worries over China and weaker dollar internationally kept the copper prices in range. China’s central bank said on Tuesday it would keep monetary policy steady with timely fine-tuning to help stabilize economic growth, while introducing greater yuan flexibility. Nickel prices moved up more that 1.5% on MCX over the ban by Indonesia the top exporter of the ore on overseas shipment. Weaker dollar internationally also helped copper and other base metals to maintain its strength. Traders expect copper prices to remain in a range to down for the day over economic worries in China and weaker dollar. Other base metals can follow copper



Metals All Mixed Up This Morning

Metals All Mixed Up This Morning
Metals All Mixed Up This Morning

Gold is trading at 1309.40 gaining on Ukraine tensions. This morning the precious metal is holding steady as markets hope the violence will ease in Kiev. Silver tumbled 43 points to exchange at 19.528. Gold was flat on Tuesday after gaining in the previous two sessions but traded near its highest in three weeks as more intense fighting in Ukraine lifted the metal’s safe-haven appeal.

Pro-Russian rebels shot down a Ukrainian helicopter in fierce fighting near the eastern town of Slavyansk on Monday, and Kiev drafted police special forces to the southwestern port city of Odessa to halt a feared westward spread of rebellion. Heavy fighting in eastern Ukraine has lifted gold to trade at three week highs but gains are expected to be limited, analysts say. Traders said they expect volatility in prices as the Ukraine situation develops, and that sentiment continues to be fragile due to outflows from gold funds.

SPDR Gold Trust, the world’s top bullion-backed exchange-traded fund, saw its holdings drop by nearly 10 tonnes last week on strong US data as the Federal Reserve further cut its stimulus measures. Holdings are unchanged so far this week.   Gold is usually in demand as a safe-haven bet during times of political and economic uncertainty. 

Platinum and palladium prices were largely steady on Tuesday after climbing 0.9 per cent and 0.7 per cent, respectively, in the previous session on supply worries.  South Africa’s Association of Mineworkers and Construction Union (AMCU) on Monday rejected the latest wage offer by the world’s three biggest platinum mining companies, who said the workers were afraid to accept the companies’ latest wage offer because of “threats to their personal safety”. 

South African President Jacob Zuma has accused the AMCU union of irresponsibility for dragging out the platinum strike for almost four months, saying there was a risk of workers losing their jobs because of the dispute. 

Industrial metals remain weak after lackluster Chinese manufacturing data, as continued strong US numbers offset the decline. Copper is trading at 3.056 adding 3 points this morning. Shanghai copper edged up on Monday to near its highest in two months, supported by steady local demand as markets returned from a two-day holiday and tracking gains in London copper prices that climbed on hopes of the U.S. economy gaining speed. Chinese iron ore and steel futures rose on Monday after a steep sell-off last week, but concerns about swollen raw material iron ore stocks in ports, tight credit and a weak outlook for steel product demand kept investors on edge. The red metal reached an eight week high as analysts pointed to significant amounts of copper supply being held as collateral in financing agreements in China. End users in China have been paying the highest spot premium since 2011 to acquire supplies of copper. Fresh selling of copper this morning and a physical tightness in China is supporting market sentiment, the broker said

Strong US Data Offsets Lackluster Chinese Data As Metals Remain Balanced

Strong US Data Offsets Lackluster Chinese Data As Metals Remain Balanced
Strong US Data Offsets Lackluster Chinese Data As Metals Remain Balanced
Metals are mixed starting off the week with gold climbing just $3.00 to trade at 1305.90 as traders seem to be favoring the Japanese yen as the safe haven as war breaks out in the Ukraine. Gold seems to be out of favor.  Last week gold prices started on a negative note and fell below the $1300 mark as strengthening US housing market has once again sent strong signals to the investors that US is on a path of growth trajectory. Price declines continued throughout the week and the fall accelerated further as the Federal Reserve reinforced its view in the U.S. economy’s prospects and reduced its monthly bond purchases further by $10billion taking the total asset purchases to $45 billion. The metal came under pressure after the data from the U.S. showed that consumer spending recorded its largest gain in more than 4-1/2 years in March and factory activity accelerated last month, strengthening views the economy was regaining steam. On Friday the US nonfarm payroll report showed that the US was creating more jobs than expected and unemployment tumbled to 6.3%. The US is now on a full swing recovery moving forward on all cylinders. If it was not for the geopolitical stress from Eurasia the metal would be trading in the low 1200 range as projected.

gold monday

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.30 percent to 785.55 tonnes. Gold jewelry exports from India, the world’s second-biggest consumer of the metal, fell 39.63 percent to $7.86 billion in the year to March 2014, an industry body said on Wednesday. India exported $992.03 million worth of gold jewelry in March, up 6.09 percent on the year, the Gems and Jewelry Export Promotion Council (GJEPC) said.

platimun mondayTaking cues from movement in gold prices coupled with the weakness in the base metals pack, even spot silver prices declined in the last week. Besides, strength in the DX also acted as a negative factor and exerted downside pressure on prices. In the international markets, the white metal declined by 0.5 percent, touched a weekly low of $18.86/oz. Silver fell 8 points this morning after the lackluster Chinese PMI release showed a continued decline in the manufacturing sector. The HSBC China manufacturing PMI printed at 48.1 in April, a slight improvement on the read of 48.0 in March, but a downward revision on 48.3 in the earlier flash reading. HSBC chief economist, China, Hongbin Qu, said the latest read implied that domestic demand contracted at a slower pace, but remained sluggish.

The largest drop was in the base metals family with copper falling to 3.061 down 5 pips as the markets opened. The decline in metals was offset by the strength of US data over the past week giving metals an extra bump. Palladium is in the red this morning at 810.50 while precious metal platinum is following gold adding $1.25 to trade at 1440.80

Silver Might Be Good Buy – Grab On The Dips

Silver Might Be  Good Buy - Grab On The Dips
Silver Might Be Good Buy - Grab On The Dips
Gold opened the day at 1289.10 giving up $6.80 after traders moved to higher risk assets pushing the Dow Jones to a record high. Silver declined 32 points to trade at 19.142 and looks like it could break below the 19.00 level, which could be a good buy recommendation for the metal buy on the dips over the next day or two. Keep a close eye on the shiny metal.  Bullion continued to drift lower on yesterday, after a decision by the US Federal Reserve to continue reducing asset purchases under its economic stimulus program at the same rate of $10 billion a month.

On the Comex division of the New York Mercantile Exchange, gold last traded at $1,291.40 an ounce, showing little reaction to the move and ended down $5 from yesterday’s close. After a number of quiet days volumes picked up slightly with 130,000 contracts of 100 troy ounces by mid-afternoon compared to a daily average of closer to 200,000 contracts.

gold silver

The Federal Open Market Committee as widely expected announced a reduction of a further $10 billion to $45 billion a month of purchases under its quantitative easing program that has pumped more than $4 trillion of easy money into the US economy. At the end of a two-day policy meeting, the Fed said the economy “will expand at a moderate pace and labor market conditions will continue to improve gradually” – an assessment that tracked its statement last month. Still, traders said the gold market was frustrated at a lack of surprise in the latest Fed policy statement. Some gold investors had hoped the U.S. central bank would slow its measured withdrawal of stimulus due to economic uncertainty. In addition, the central bank’s forecast of a steadily improving U.S. economy pressured gold’s appeal as an investment hedge, market watchers said.

Silver is being undermined by its association with gold as traders too often see silver as a precious metal but forget its dual role as an industrial metal. While makers of everything from jewelry to solar panels are buying the most silver in nine years, prices are languishing. Investors are dismissing industrial demand and instead focusing on the waning appeal of precious metals as a haven, with the Federal Reserve paring economic stimulus measures, inflation muted and equities rallying. Silver has been dragged down by a yearlong slump in gold, the commodity most widely held by investors in exchange-traded funds, following a decade-long rally that saw prices for both surge more than six times.

Most industrial metals will get a boost from growth. The world economy expanded 2.1 percent in 2013 and will increase 2.8 percent this year and 3.1 percent in 2015, according to economists surveyed by Bloomberg. While that will help spur a 2.1 percent gain in industrial and photographic demand for silver, investors will sell 250 metric tons from funds backed by the metal, Barclays Plc estimates. Copper is trading at 3.025 flat this morning after tumbling all week at touching a high late last week at 3.12. More lackluster Chinese manufacturing PMI data disturbed the metals markets after a near miss this morning.


Metal Traders Seeing Nothing But Red

Metal Traders Seeing Nothing But Red
Metal Traders Seeing Nothing But Red
Gold opened the morning trading at 1293.90 in the red along with silver which is down 120 points at 19.418 ahead of the FOMC decision due later today. Traders are not expecting any changes to currency policies. There is no press conference scheduled. Earlier this morning the Bank of Japan sat tight making no changes to their current rates or policy. The only support for gold continues to be the geopolitical stress emanating from the Ukraine and this seems to be dying out slowly and becoming a war of words between the US and Mr. Putin. The US and the EU announced new sanctions against companies and associates of Mr. Putin, all with no teeth, as many laughed off the list of restrictions.

The US Dollar Index (DX) traded marginally higher by 0.1 percent yesterday on the back of rise in risk aversion in market sentiments in early part of the trade which led to rise in demand in the low yielding currency. However, sharp upside in the currency was capped due to decline in consumer confidence data from the country. The currency touched an intra-day high of 79.92 and is trading at 79.88 this morning.

Gold prices continued its fall for the second consecutive session on Tuesday on worries that Federal Reserve would continue to scale back the stimulus further outweighing tensions between Russia and Europe. On Tuesday, investors turned their sights to Washington, where the Federal Open Market Committee began a two-day policy-setting meeting. The central bank has cut its monthly stimulus efforts by $US10 billion in each of December, January and March, and some market expects that another reduction will be announced as part of the Fed’s policy statement later in the day. On an intraday basis trading is likely to remain range-bound until the Fed wraps up its meeting on Wednesday. A surprise move from the Fed could jolt the price of gold sharply higher or lower.

SPDR Gold Trust, the world’s largest ETF fund said its holding stood at 792.14 with no change from the previous day showing the investors were unsure where gold would go. The same held true for iShares Silver Trust which reported the same.  Following India’s import curbs on the yellow metal imposed last year to cut the country’s trade deficit, the export of gold jewelry and medallions has registered a drastic decline of 39.50 per cent at $11 billion in 20-13-14 compared to previous year.

In other metals palladium is trading at 802.90 in the red this morning along with platinum which dropped $3.95 to trade at 1426.90. Industrial and base metals are all starting the day in red with copper declining by 2 pips to trade at 3.074 off its recent high of 3.12. Industrial metals dipped as investors held back ahead of a U.S. central bank meeting and after further signs of slower growth in top metals consumer China.

Why Are Gold Prices Continuing To Slip?

Why Are Gold Prices Continuing To Slip ?
Why Are Gold Prices Continuing To Slip ?

Gold continued to slip this morning trading at 1295.10 down $3.90 while silver gave up 62 points to exchange at 19.557. Palladium and platinum followed suit trading at 798.90 and 1416.50 respectively. Some traders are saying strong housing data in the US supported the US recovery and weighed on precious metals while others are pointing to a lull in the tension in Ukraine and a lowering in the rhetoric between US, European and Russia officials after a new round of sanctions were announced. Most traders look at the sanctions and chuckle as they are more personal targets delaying travel or holding assets of the very rich that could really careless. Yesterday, the U.S. hit Russia with additional sanctions over its intervention in Ukraine. The latest measures target seven Russian officials and 17 companies the U.S. says are linked to Russian President Vladimir Putin’s inner circle.

Meanwhile, the latest reading on U.S. consumer confidence is due later today, and it’s expected to reflect growing optimism. In fact, it could hit the highest level since November 2007. Before that, the Case Shiller index on home prices is expected to show housing costs remain elevated in February.

Gold traded below $1,300 an ounce on Tuesday, holding on to most of its losses from the previous session as strong U.S. data offset safe-haven bids from escalating tensions between Russia and the West. Investors are now eyeing this week’s U.S. jobs report and a Federal Reserve policy meeting to further gauge the strength of the world’s largest economy and the central bank’s stance on tightening monetary policy.


China’s gold purchases via main conduit Hong Kong fell to a four-month low in March as a weaker yuan and domestic prices below the global benchmark kept banks from importing. India is reporting a decline in sales is expected this wedding season. This Akshaya Tritiya, falling on Friday, might not be as exciting as it used to be. Gold has lost some luster over the past year and this is unlikely to return so soon, resulting in erosion of interest among investors. From Akshaya Tritiya last year, on May 13, gold prices are up 12.3 per cent (mostly due to lower rupee), investors have been on a selling mode globally and several restrictions on import and jewelry businesses have taken the wind out of the sails of the sector.

Failed merger talks between Barrick Gold Corp and Newmont Mining Corp descended into acrimony, with the two large gold miners publicly accusing each other of scuppering a deal favored by many investors.

Metals are expected to trade in a tight range ahead of major economic data due later this week as traders will begin to position themselves ahead of the Fed announcement and the nonfarm payroll report due on Friday.

Precious Metals and Industrial Metals Rally On Demand

As Pressure Mounts on Paper Currencies, World Central Banks Opt for GoldGold is trading at $1291.80 up by $1.20 in the Asian session Friday morning after rebounding late in the day on Thursday. Yesterday morning gold dropped $15.69 to $1268.71 before it shot up to $1297.96 and then fell back, but it still ended with a gain of 0.66%.  Silver slipped to $18.957 before it jumped up to $19.915 and then also fell back off, but it still ended with a gain of 1.24%. Harsh words between global leaders late in the on Thursday led to the run for safety as precious metals gained.

A report showed the total consumption of US gold for January 2014. The figures are out and it looks like the United States exported a record amount of gold to Hong Kong in January.  Not only was this a one month record. Last year, the U.S. exported a total of 215 metric tons of gold bullion to Hong Kong.  This was not the total amount of gold exported to Hong Kong as some smaller quantities of Dore’ and precipitates made their way into the country as well. However, Hong Kong received more gold than any other country.


Gold held above a 10-week low as rising tension in Ukraine stoked haven demand and buying increased in China, the world’s largest consumer. Palladium headed for a weekly advance. Gold has rallied 7.5 percent this year, rebounding from the worst annual drop in more than three decades, partly as the conflict between Russia and Ukraine fueled demand. In China, volumes for the benchmark spot gold contract in Shanghai climbed to a two-month high yesterday.

Holdings in the SPDR Gold Trust, the largest gold-backed exchange-traded product, held at a 12-week low of 792.14 metric tons.

Palladium traded at $801.79 an ounce from $801.40 yesterday; when prices climbed to a one-week high of $804 on concern that supplies from Russia may be disrupted as the tension with Ukraine mounts. Russia and South Africa are the biggest producers. Prices ended at $797 last week.

Platinum was at $1,412.75 an ounce from $1,413.69, little changed this week. The world’s largest platinum companies said they will put their latest pay offer directly to striking South African workers, bypassing their union after talks to end the 13-week walkout failed to win a breakthrough.

Copper continues to advance breaking its 2014 high at $3.122 after China’s warehouse purchased a record amount of copper for inventory. Copper prices jumped by more than 1 percent yesterday on the back of robust durable goods orders data from the US that boosted demand for the red metal. Also, weakness in the DX along with jump in German Ifo Business Climate data acted as positive factors. However, sharp upside was cushioned owing to more than expected rise in Unemployment Claims data from the US. Also, mixed global market sentiments exerted downside pressure on prices.


Metals Hold Little Attraction For Traders As Prices Tumble

Metals Hold Little Attraction For Traders As Prices Tumble
Metals Hold Little Attraction For Traders As Prices Tumble

The US gold market was closed on Friday for the Easter holiday, but remained opened on Monday but saw little action with most of the European traders out of the office for the Easter Monday holiday. Gold is in the red this morning trading at 1287.10 as the US dollar continues to gain, breaking above the 80 level. Ongoing positive data from the US continues to prove that the winter storms were the primary factor in disappointing data from January and February. After reporting initial jobless claims at their lowest level in almost seven years in the previous week, the Labor Department released a report on Thursday showing that claims rebounded slightly in the week ended April 12th. The Labor Department said initial jobless claims inched up to 304,000, an increase of 2,000 from the previous week’s revised level of 302,000. Economists had expected jobless claims to climb to 315,000 from the 300,000 originally reported for the previous week. Even with the upward revision, the number of jobless claims in the previous week was still at the lowest level sitting hitting a matching figure in the week ended September 22, 2007. Leading economic indicators showed continued improvement in the month of March, according to a report released by the Conference Board on Monday, with the leading economic index rising by slightly more than expected. The Conference Board said its leading economic index rose by 0.8 percent in March after climbing by 0.5 percent in February. The advance exceeded economist estimates for a 0.7 percent increase. Growth in Philadelphia-area manufacturing activity has accelerated by much more than anticipated in the month of April, according to the results of the Federal Reserve Bank of Philadelphia’s Business Outlook Survey released on Thursday.

gold and silver monday

Traders are now expecting the US FOMC to increase its rate of tapering at its meeting the end of the month. Gold fell for a sixth day toward the lowest level in more than two weeks on signs of an improving U.S. economy as assets in the largest exchange-traded product sank to a 12-week low. Bullion fell to $1,282 yesterday, the lowest level since April 3, and a sixth day of losses would be the longest run since November. Holdings in the SPDR Gold Trust contracted to 792.14 metric tons, the smallest since Jan. 28, data from the website showed. Gold ended a 12-year bull run in 2013 on expectations the Federal Reserve would reduce stimulus as the world’s largest economy recovers. Data today may show a U.S. manufacturing gauge expanded after a report yesterday showed the Conference Board’s index of leading indicators rose the most in four months.

Silver is following on the heels of gold trading in the red at 19.345 on Tuesday morning. Palladium rose 0.3 percent to $781.55 after prices fell to $773.15 yesterday, the lowest since April 8. The main union in South Africa will meet the three largest platinum producers today after a strike over wages entered a 13th week. Platinum advanced 0.2 percent to $1,406.50.

copper mondayCopper continues to edge down easing by 17 points this morning to trade at 3.029 after climbing to the 3.05 level last week. A reading of HSBC Holdings Plc and Markit Economics Ltd.’s China manufacturing purchasing managers’ index due tomorrow may show an increase to 48.3 for April, from 48 in March, according to the median estimate of economists compiled by Bloomberg. Readings below 50 signal contraction. Copper futures, trading little changed, were poised to decline for the first time in three sessions as gains in the dollar reduced the metal’s appeal as an alternative investment.


Precious Metals Ease While Base Metals Climb

metals gold and silver bnsnlaGold eased by $2.00 to trade at 1301.50 after last evenings comments from Federal Reserve Director Janet Yellen. Gold futures settled with a gain today as traders assessed a speech from Federal Reserve Chairwoman Janet Yellen. Gold ticked up 0.3 percent to finish at 1,303.50 after touching a low of $1,293.50. In a speech to the Economic Club of New York on Wednesday, Yellen said that central bankers and many economists see a return to full employment and stable prices by the end of 2016. That baseline is “quite plausible,” she said, but still two years away. While gold ended a 12-year bull run in 2013 on expectations the Federal Reserve would reduce stimulus as the world’s largest economy recovers, prices have rebounded 8.5 percent this year as unrest in Ukraine spurred haven demand. Gold held steady just above $1,300 an ounce on Thursday supported by tensions in Ukraine, but the metal was at the risk of adding to recent losses as the world’s biggest gold-backed fund saw its sharpest outflow in nearly four months.

Holdings in SPDR Gold Trust fell 8.39 tons to 798.43 ton- the biggest outflow since Dec. 23, indicating waning investor interest. China’s annual demand for gold could jump around 20 per cent by 2017 as more of its increasingly wealthy population seeks new ways to make money, the World Gold Council predicts. The forecast by the World Gold Council (WGC) comes after China became the world’s largest gold-consuming nation in 2013, overtaking India.

Annual demand for gold in the form of jewelry, coins and bars is set to hit “at least 1,350 tonnes by 2017”, the WGC said in a report on China. That would represent a rise of nearly a fifth from the country’s record consumption of 1,132 tonnes last year.

In other metals yesterday, silver increased 0.7 percent to $19.63 an ounce. Copper prices climbed following data showing China’s economy slowed somewhat less than feared. High-grade copper increased 1.3 percent to settle at nearly $3.03 a pound. Palladium added 0.8 percent to 802.30 an ounce, while platinum declined 0.5 percent to 1,437.80 an ounce.

Thursday morning saw silver tumble to 19.553 giving up 81 points while copper reversed losses to climb by 9 points to trade at 3.038 as the metal markets remain mixed and confused in the Asian session. Gold prices drifted quietly lower in Far East trading on their Tuesday until around 2 p.m. Hong Kong time. Gold trading was halted, as gold gapped down $12 in an instant, as 4,000 contracts were dumped in seconds.  In less than three minutes it was all over.

China, the market for nearly 40% of the world’s copper, said its economy grew by 7.4% in the first quarter, slower than the last three months of 2013 but above analysts’ forecasts. The number boosted investors’ confidence that China will maintain growth rates around 7.5% for the year.

Wednesday’s bounce comes on the heels of a 2% drop in copper futures the day before, as traders bet against the industrial metal ahead of the Chinese data.

Copper has been one of the worst-performing commodities in 2014, with futures down 11% in the first quarter. The losses came as many investors bet that an economic slowdown in China and sluggish growth in the U.S. would dent global demand for copper and sold, or shorted, copper futures. Prices for the industrial metal have crept higher in recent weeks after China announced some stimulus measures to boost economic growth. Meanwhile, production shortages in key mines have taken the edge off worries regarding an anticipated supply glut later this year.


Gold, Silver, Copper, Platinum & Palladium Trending Down

Gold, Silver, Copper, Platinum & Palladium Trending Down
Gold, Silver, Copper, Platinum & Palladium Trending Down
Asian Markets are trading higher as the Hang Seng was up by 0.44% while the Nikkei 225 was up by 2.26% and the benchmark Chinese market is down by 0.37%. Asian stocks rose for the first time in four days, with the regional benchmark index climbing from a two-week low, as investors weighed a rebound in U.S. shares against a repo forecast to show slowing Chinese growth. Chinese GDP data reported better than expected this morning with annual growth beating forecast printing at 7.4%. The National Bureau of Statistics said today in Beijing that China’s economy grew 7.4 percent in the January to March quarter from a year earlier. That compares with economist estimates for a 7.3 percent expansion, and 7.7 percent growth previously reported for the quarter before.

Gold continued its downward trend to trade at $1298.60 giving up $1.70 after falling on Monday and Tuesday. With stronger economic data from the US traders are now expecting the FOMC to step up their pace of tapering. Gold ended a 12-year bull run in 2013 on expectations that the Fed would cut stimulus as the largest economy recovered. Fed Chair Janet Yellen is scheduled to address the Economic Club of New York today after data yesterday showed that U.S. consumer prices accelerated in March. Bullion has rebounded 7.9 percent this year as unrest in Ukraine spurred haven demand.

gold metals wed

Gold has been supported by the recent violence in Ukraine. Ukrainian troops retook state buildings from armed pro-Russia activists in the eastern Donetsk region yesterday, escalating the conflict as Russia warned of a civil war. White House spokesman Jay Carney said while the U.S. is considering military assistance to Ukraine, lethal aid isn’t an option.

Gold tumbled yesterday as the increase in U.S. consumer prices spurred speculation that Fed policymakers would have more leeway to extend cuts to stimulus. The drop also came as the World Gold Council said that as much as 1,000 metric tons of bullion in China may be tied up in financing deals.

Silver lost 0.8 percent to $19.4622 extending losses into a fourth day recovered a few pips this morning but remains in a downtrend. Platinum fell 0.4 percent to $1,435.13 after dropping 1.7 percent yesterday, the most since Jan. 30. Palladium traded 0.4 percent lower at $791.50 dropping for a second day.

platinum wed

Copper plunged on Tuesday and continued to decline on Wednesday morning after Chinese industrial production missed expectations. Copper is trading at 2.992. Aluminium and Copper settled lower, while copper wedNickel, Lead and Zinc settled higher on LME. Copper moved lower amid escalated tensions on Ukraine, however as positive economic data from the USA and Europe checked declines. Comex Copper ended higher on Monday supported by upbeat US data. Data from U.S revealed that U.S. retail sales recorded their largest gain in 1-1/2 years in March and the latest data to suggest that growth may spring back in the second quarter after an unusually harsh winter. Chile’s copper production increased by 6.4% year-on-year in February 2014, as a result of increased output at the Escondida, Collahuasi and Anglo American Sur operations. The country produced 449,500 MT of copper in the month, compared with 422,300 MT a year earlier, according to Chile’s national copper commission.

Precious Metals and Industrial Metals Trading In The Green

Precious Metals and Industrial Metals Trading In The Green
Precious Metals and Industrial Metals Trading In The Green

It’s been a busy morning in Asian markets as the week kicks off.  President Obama and Putin continue their war of words as the Eurozone members contemplate more sanctions against Russia. Oil advanced with gold. Palladium traded at the highest since 2011 and eastern European currencies slumped as the United Nations Security Council met to discuss worsening violence in Ukraine. Palladium closed at its highest level in two-and-a-half years, while platinum has neared a four-week high as escalating tensions between Russia and the West and continued mine-worker strikes in South Africa spur worries about supply.

Palladium on Friday rose $14.50, or 1.8 per cent, to settle at $806.80. This was the highest close since August 2, 2011, when palladium settled at $826.90 an ounce. Nymex platinum rose $2.50, or 0.2 per cent, to settle at $1,462.60 its highest level since March 17. Platinum and palladium are often found together, and both metals have been marching higher in recent weeks amid worries that top palladium producer, Russia, would face a new set of trade sanctions from Europe and the US. The West’s diplomatic relations with Russia have frayed after it annexed Ukraine’s Crimea region in mid-March. Russia supplies about 40 per cent of the world’s palladium, while South Africa supplies about 37 per cent. Metals traders also kept a close eye on South Africa, the world’s top platinum producer and second-largest palladium producer, where mine-worker strikes entered their 11th week.

palladium monday

This morning gold added 0.7 percent to $1,327.50 an ounce after touching the highest price since March 24. Palladium rose to $814.65 an ounce, the priciest since August 2011, while platinum increased 0.7 percent to trade at $1,466.95. Silver took its cues from gold to add 117 points to trade at 20.063.SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 1.80 tonnes to 804.42 tonnes on Friday.

copper along with industrial metals are trading in the green this morning with copper adding 13 points to trade at 3.054 as inventory levels in China continue to climb. Stronger US data helped give metals their bump this morning. There is no sign yet of copper financing deals in China unwinding, Goldman Sachs analyst Max Layton told the copper market gathered in Santiago for Cesco. Copper is being shipped out of China, though: among the things that Metal Bulletin’s Andrea Hotter and Mark Burton learned in Santiago was that shipments have been sent as far as Rotterdam and Antwerp. A large copper producer said that low copper prices after Black Friday had encouraged customers to book business forward in a manner not seen for years. Shanghai Futures Exchange copper prices closed higher on Friday April 11 following comments from the People’s Bank of China governor on policy and tight availability in the spot market.

gold monday


Metals Ease Into The Red

Metals Ease Into The Red
Metals Ease Into The Red
Gold is trading at 1319.00 down just a few cents this morning after climbing on Thursday. Silver tumbled 68 points but remains over the 20 level. Silver is trading at 20.023. Palladium and platinum are both in the red, at 786.60 and 1456.30 respectively. Gold was trading near its highest in 2-1/2 weeks on Friday, and looked set to log its best week in a month on weaker equities and increasing hopes that the U.S. Federal Reserve will hold off on tighter interest rates. This week gold saw a lot of action. Gold investors were reassured by Wednesday’s release of the Fed’s March meeting minutes that showed policymakers were not keen on rising interest rates straight after the wind-down of bond purchases, as the markets had feared. Gold’s safe-haven appeal was also boosted by the biggest one-day drop on Nasdaq since August 2011 on Thursday. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.26 tonnes to 806.22 tonnes on Thursday.

Gold headed for a second weekly rise as minutes from the U.S. Federal Reserve’s last meeting damped expectations for higher borrowing costs, while tension in Ukraine persisted. Gold gained this week as Ukraine sent security forces into eastern regions after pro-Russian protesters seized government buildings. Prices extended an advance after minutes of the Federal Reserve’s March meeting, at which monthly bond buying was cut for a third time, showed that several policy makers said projections for an interest-rate rise might be overstated. Gold rallied 9.8 percent this year, rebounding from the worst annual drop in more than three decades, as the unrest in Ukraine, a rout in emerging markets and concern the U.S. recovery may be losing momentum spurred demand for a haven.

Gold extended gains to a third session on Thursday, scaling fresh two-week highs, after minutes from the Federal Reserve’s policy meeting showed that officials were not keen on increasing interest rates anytime soon. Gold prices came under pressure last month after Fed Chair Janet Yellen said the US central bank would probably end its massive bond-buying programme this fall and could start raising interest rates around six months later. Low interest rates, which cut the opportunity cost of holding non-yielding bullion above other assets, had been an important factor driving gold higher in recent years.

 Minutes from the Fed’s March 18-19 meeting released on Wednesday showed policymakers were unanimous in wanting to ditch the thresholds they had used to telegraph a policy tightening and did not reveal any discussion of keeping rates near zero for a considerable time.

Industrial and base metals are trading in the red this morning as Chinese trade balance numbers and CPI and PPI both missed expectations this morning. Copper is down 2 points at 3.037. Base metals on the LME traded on a positive note yesterday taking cues from positive jobless claims data from the US. Also, weakness in the DX coupled with decline in inventories acted as a positive factor. However, weak global market sentiments along with weak French industrial production data restricted sharp gains in prices. Copper prices gained around 0.4 percent yesterday as the unemployment claims in the US fell to a 7-year low, thereby pointing towards improving economy and brightened prospects for the red metal. Also, weakness in the DX coupled with 0.3 percent decline in inventories to 250,025 tonnes supported gains.