Gold Traders Begin To Take Position Ahead Of ECB

Gold Traders Begin To Take Position Ahead Of ECB
Gold Traders Begin To Take Position Ahead Of ECB

Gold was able to remain a hair above the $1200 level on Wednesday after touching a low of $1197 as the US dollar rally continues pushing the greenback as high as 96.08. The greenback eased as markets closed on Wednesday but reversed on Thursday morning traders booked profits as it hit levels not seen in a very long time. IG analyst Alastair McCaig said: ‘Gold continues to swing about with limited conviction, and only a close below the $1,200 level would offer conclusive proof that it has finally settled on a return to its previous negative stance.’ Silver is following gold to trade at 16.178 down 118 points coming close to its lowest level in 2015 and will most likely pop in the Asian session as traders buy up the cheap commodity.  Gold recovered just under $3 in early trading while silver added 87 points to 16.245 as buyers continue to buy up the cheaper metals. The strength of the US dollar continues pushing it above 96.08 in the early morning. Expectations are that the gains will reverse as the European markets open and focus moves.

Gold traders will begin taking positions ahead of a series of monetary-policy decisions that could add volatility to prices in coming days, including news from the Bank of England and the European Central Bank. While easy-money policies aimed at spurring growth typically boost demand for gold as a store of value, some trader’s worry the shifts could buoy the dollar and hurt gold.

Gold has also been under pressure as a rally on Wall Street lured away investors in recent months. The S&P 500 and the Dow Jones Industrial Average both closed at fresh records on Monday, while the NASDAQ rose above 5000 for the first time in nearly 15 years.

Gold(15 minutes)20150305060813

Palladium prices extended their five-month high amid hopes that China will mandate clear air-quality standards at an annual meeting of its legislature, which started today. Palladium is widely used in car-exhaust filters, and tighter environmental standards can lead to greater demand for the metal. China is the world’s largest car market. Palladium rose 55 cents, or 0.1%, to $831.65 a troy ounce on the Nymex, the highest settlement since Sept. 18, 2014. Prices for platinum, another metal used to scrub automobile emissions, snapped a four-session winning streak, pulling back 30 cents to $1,189.60.

metals forexwords copper 29Copper ended an up and down day flat at 2.658 as the strength of the US dollar and China’s congress keep traders at bay. Copper mines from Australia to Zambia are confounding forecasters as slumping prices and mine disruptions threaten to erase a global production surplus. Banks including JPMorgan Chase has revised output forecasts with prices hovering near a 4 yr low. While China’s State Reserve Bureau may buy less metal than last year, the country still uses one of every 2 tons the world produces for power lines and appliances, and will not need to import much to take up the surplus…” Copper remains well below the record of 2011, and mine owners started cutting output after a 23% slump in prices over the past 2 yrs. 

Copper(15 minutes)20150305060828

Apple Watch Demand Supporting Gold Prices

Apple Watch Demand Supporting Gold Prices
Apple Watch Demand Supporting Gold Prices
Gold was steady in the morning session trading at 1205.20 after falling as low as 1194.40 on Tuesday. European markets were trading higher as better than expected German retail sales further buoyed investors days before the European Central Bank kicks off a trillion-euro bond buying program. Markets eventually gave back their gains. Gold prices recovered as the dollar came off an 11-year peak against a basket of currencies. However, expectations of rate hike by the Federal Reserve kept the gains under check. Also, India kept the gold import duty at a record 10 percent in a setback for jewelers when it unveiled its budget over the weekend. Investors moved away from the safe haven of the precious metal yesterday following a four-day gain. Investors now await the important U.S. non-farm payroll data due later today and the upcoming European Central Bank meet.

Traders expect gold and silver prices to trade lower as growing expectations for a U.S. interest rate hike kept the dollar near an 11-year peak against a basket of currencies. Also, Structural reforms in China aimed at a more sustainable pace of economic growth would keep gold demand in check. Traders continued to remain skeptic about gold given the outlook for a June rate hike by the Federal Reserve and some stubborn, low U.S. inflation.

Some analysts say gold prices would be below $1100 were it not for increased demand for physical gold from Asian buyers and Apple’s interest in bullion for its premium Apple Watches.

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Seven of the Fed’s current 17 members have now said they at least want the option of an interest rate hike in June on the table, or have pushed in general for an earlier increase in expectation that wages and inflation will turn higher.  The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, is holding 763.49 tonnes as per latest available data on their website.

Silver was trading at 16.227 dropping dramatically by 224 points on Tuesday while platinum tumbled $4.45 to 1158.45 at the close on Tuesday. Silver is trading at 16.258 in the Asian session while platinum fell $1.85 to reach 1183.70.

copper-set recovered some of its losses to trade at 2.664 up by 10 points in the morning session. Copper was the big loser on Tuesday dropping 45 points to trade at 2.652. Copper slipped on Tuesday from a seven-week peak hit in the previous session as expectations of rising U.S. interest rates pushed up the dollar and flattened commodity prices. Copper struck seven week highs on Monday after the People’s Bank of China cut interest rates at the weekend to shore up the economy which is struggling with a moribund property market and slowing economic growth. China’s slowing economy will be at the forefront as parliament convenes for its annual meeting this week. Analysts expect copper prices to trade sideways as expectations of rising US interest rates pushed up the dollar will exert pressure on prices. However, the surprise rate cut by China’s central bank will continue to support prices. Also, estimates of favorable retail sales data from Germany will act as a positive factor.

Copper(15 minutes)20150304064552

 

 

 

Gold Goes Up And Down To Trade Flat

Gold Goes Up And Down To Trade Flat
Gold Goes Up And Down To Trade Flat
Gold reversed course late on Monday to give back some gains and continued to ease on Tuesday morning giving up $2.20 to trade at 1206.00. On Monday gold fell with the Comex futures price down by $4.90 or 0.4 per cent to 1,208.20 per ounce. Gold prices traded higher for most of the last week however closed with marginal gains. Comments from Federal Reserve Chair Janet Yellen pushed back expectations for the first U.S. rate hike in nearly a decade to later in the year. China’s gold imports from Hong Kong rose in January from the previous month, reflecting increased demand of the Lunar New Year supported prices. Greece delayed its economic reform plans to the Eurozone, missing a Monday deadline for the list which is a condition for extending the country’s financial lifeline also acted as a positive factor for the yellow metal. Data from the International Monetary Fund showed that the Eurozone raised its gold holdings by 7.437 tonnes to 10,791.885 tonnes in January while Turkey slashed its bullion reserves. In the international markets, spot gold prices rose by 0.89 percent last week. Last week, holdings in the SPDR Gold Trust remain unchanged at 771.25 tonnes. On a year-to-date basis, holdings have declined by 26.97 tonnes, or around 3.38 percent.

Gold declined to the lowest level in a week as the dollar traded near a decade-high and U.S. equities advanced to records, cutting demand for a protection of wealth. Silver slumped to the lowest price in almost two months. Silver is trading at 16.49 up by 39 points while platinum gave up $3.30 to reach 1185.40.

Federal Reserve Chair Janet Yellen last week sought to prepare investors for a change in the Fed’s pledge to be patient on raising interest rates, saying it would provide flexibility to tighten when conditions are ripe. A shift would signal the economy has improved to the point where an increase “could be warranted at any meeting,” Yellen said.

Gold(60 minutes)20150303050814

Gold steadied yesterday as investors cashed in gains after upbeat Asian demand earlier lifted the metal to two-week highs, with expectations for a rise in U.S. interest rates later this year keeping a lid on prices. A strong U.S. non-farm payrolls report on Friday could bolster expectations that the Federal Reserve will press ahead with an interest rate increase sooner rather than later. Gold fell 5.5 percent in February, its biggest monthly loss since September, on expectations for a hike later this year.

CopperSymbolIndustrial metals trade in the green after the interest rate move by the PBOC helped support prices as increased demand is supporting prices. Copper is trading at 2.662 tumbling 33 points this morning after markets turned glad to sad as worries over Chinese growth spread rapidly.  Copper has risen to its highest level in seven weeks after China unexpectedly cut interest rates before retreating on worries about slowing Chinese growth. “It’s disappointing, I would have expected prices to move more than they did. The rate cut is showing the readiness of the Chinese government to fight against the slowdown,” Gene Weinberg, head of commodity research at Commerzbank in Frankfurt, said.

Precious Metals and Base Metals Kick Off March Rally

Precious Metals and Base Metals Kick Off March Rally
Precious Metals and Base Metals Kick Off March Rally
Traders have a lot to digest as the new month begins this morning. Over the weekend China continued to make headlines in the financial markets. On Saturday the Peoples Bank of China announced a surprise rate cut by 25bps. The next day, a factory gauge for February signaled contraction for a second month, underscoring the need for looser policy. This morning the HSBC manufacturing index showed a slight upturn offsetting Sunday’s official release.

Speculators continue to focus on the US Federal Reserve as board members take to the road making speeches trying to help the Fed communicated. The consensus now is that the Fed will change its forward guidance at its meeting later this month.  On Friday data showed U.S. economic growth braked more sharply than initially thought in the fourth quarter amid a moderate increase in business inventories and a wider trade deficit, but strong domestic demand brightened the outlook.

Gold climbed as much as 0.8 percent to $1,223 an ounce on the Comex in New York, the highest level for a most-active contract since Feb. 17, gold added $7.30 in the Asian session to trade at 1220.40. Silver for immediate delivery rose 1.1 percent to $16.7759, extending last week’s 2.2 percent increase. Platinum gained as much as 0.4 percent to $1,193.88 an ounce, the highest since Feb. 17. Palladium jumped 0.4 percent to $820.63 an ounce, the highest since Dec. 11.

Gold imports by India, the world’s biggest consumer, are poised to surge after Finance Minister Arun Jaitley confounded industry expectations for a reduction in tax. Overseas purchases may jump to 100 metric tons in March from about 25 tons in February as jewelers and traders, who delayed purchases in anticipation of the tax cut, replenish stockpiles. The latest announcement from the Russian Central Bank shows, that after several months of continuing high levels of additions to its gold reserves last year, it made no new gold purchases in January.

gold chinese demand stockpairs

copperingotsCopper and aluminum rose for a third day after China cut benchmark interest rates for the second time in three months to spur economic growth, boosting demand prospects in the world’s biggest metals consumer. Copper climbed as much as 0.8 percent and aluminum increased as much as 1 percent.  Copper is trading at 2.702 up by 14 points in the Asian session. Copper fell on Friday following sharp increases in inventories, reigniting concerns about oversupply weighing on the market and giving bearish Chinese speculators a chance to resume selling. But the wider trend in recent weeks has been of bullish investors betting on a price recovery ahead of China’s seasonally strong second quarter, and the metal remains on track to record its biggest monthly gain since September 2012.

Gold(15 minutes)20150302065418

Gold Steady While Copper Gives Back Gains

Platinum+gold forexwordsGold rallied on Thursday and is trading flat on Friday morning at 1209.60. The precious metal was immune to the sharp rally by the US dollar which surged over 95.35 in late trading yesterday. The euro was the biggest decliner losing close to 150 points at one point in the session to close at 1.198. Most gold speculators are not sure what to make of the rally so they moved to the sidelines.

Onto the political side, gold demand has eased as geo-political tensions ease with Ukraine-Russia cease fire. Looking at the other major ongoing issue, if EU Creditors and Greece politicians are able to get an amicable solution to the debt issues we might see traders and investors appetite for risk improving while the same should act negatively for gold commodity. Greece continues to make headlines as the new Greek leaders try to save face after backing down from demands to succeed to the Eurozone’s bailout terms. Although yesterday the IMF director turned down Greece’s reforms saying they were vague and without documentation or processes.

Silver dipped 37 points in the session to trade at 16.587 remaining weaker than gold while platinum added almost $2 to rise to 1176.30. Gold has been positive after Fed Chair Janet Yellen’s comments in her testimony and demand picking up from China support. From China, data showed, net gold imports from Hong Kong rose to 71.6 MT in Jan from 58.8 tons in Dec, supporting the positive sentiment. However as we look at very strong Dollar movement and rising Asian equities. Bullion may not see any major boost coming in intraday as has been the case in last two days.

Gold(15 minutes)20150227062148

Lower inflation was blamed on energy prices and expectations for a stable oil price in the near term helped the dollar surge whereas comments from Fed officials especially San Francisco Fed President John Williams and St. Louis Fed chief James Bullard both suggesting that US central bank might end its near zero interest rate policy sooner than some traders expect.

In other metals, copper gave back some of its gains to trade at 2.679 down by 12 points as traders booked profits and the strong US dollar weighed on the dollar denominated commodity.  Copper continues to be the surprise element in the base metals sector, bagging gains of around 1.69%. Copper jumped to the highest in six weeks on Thursday as bearish investors scrambled to buy futures to close out their positions after Chinese trading resumed following a holiday break. The rest of the LME complex also had a firm undertone thanks to the resumption of physical buying in China, combined with firmer oil prices and decent economic data, analysts said. The gains were curbed, however, as stronger than expected data on U.S. durable goods orders in January lifted the U.S. currency, making metals priced in the dollar more expensive to buyers using other currencies. Traders said there were initial signs of an uptick of copper consumption in China, the world’s top user of the metal, ahead of the second quarter, typically the strongest demand period.

Copper(15 minutes)20150227062213

Gold & Silver Climb To The Top Of Their Trading Range

Gold & Silver Climb To The Top Of Their Trading Range
Gold & Silver Climb To The Top Of Their Trading Range
Gold regained $7.20 in the Asian session on Thursday morning reacting to the Fed’s comments. The US dollar has been declining steadily since the Fed indicated that interest rates are still farther down the road. The declining US dollar allowed gold to rise as the pair reacts inversely.  Gold futures scored their first gain in four sessions on Wednesday. Gold is trading at 1208.70 this morning.  Silver is trading at 16.587 up by 113 points while Platinum climbed $8.05 to trade at 1178.15.

The next Fed meeting, however “could be extremely important as they will have a more clear picture of inflation, especially as the oil price is stabilizing, and they will also have the U.S. non-farm payroll data for this month,” said Aslam. The next Fed meeting is set to begin on March 17.

Meanwhile, the preliminary HSBC China Manufacturing Purchasing Managers’ Index, a gauge of nationwide manufacturing activity, showed a marginal improvement. The index rose to 50.1 in February, compared with a final reading of 49.7 in January.

Premiums on the Shanghai Gold Exchange rose $5 to $6 an ounce over global spot gold prices overnight, a sign of strong demand from China, according to Mark O’Byrne, a director at GoldCore. That’s up from a premium of $3 to $4 before the Lunar New Year break.

According to the World Gold Council, the central banks have increased their gold reserves for five consecutive years and have added 477.2 tons in 2014. Purchases are likely to be over 400 tons in 2015. The euro zone raised its gold holdings by 7.437 tonnes in January, data from the International Monetary Fund showed on Tuesday. Traders attributed the increase to Lithuania joining the currency bloc, while Turkish holdings declined by 14.227 tonnes.

Gold(15 minutes)20150226064514

gold silver copper bnsnla Copper is trading at 2.652 climbing steadily for the last two days adding 6 points in the Asian session.  Copper has been steadily declining in 2015. The current bearish sentiment toward copper is being driven by concerns about China’s economy slowing with the market ignoring the fact that mine supply is looking increasingly constrained, Citibank’s research department said. Over the last decade, average global copper consumption growth has been in the region of 2.5% a year, “a remarkably low average given the strong growth in China consumption rates. This average annual rate is less than half that for aluminum.” Analyst at the bank David Wilson said that two factors have been at work to limit the rate of global copper demand growth. Copper prices may trade higher as concerns of supply tightening rise after BHP Billiton Ltd., the world’s biggest mining company, announced plans on Monday to cut project spending to the lowest since 2010.

Copper(15 minutes)20150226064535

 

Chinese Gold Buyers Return After Week Holiday

Chinese Gold Buyers Return After Week Holiday
Chinese Gold Buyers Return After Week Holiday
Wall Street ended on a positive note, scaling a new high after Fed’s remarks that it would be patient in raising interest rates. European markets gained after Eurozone finance ministers approved reform proposals submitted by Greece. Asian markets are trading in the green responding to US markets. Most of the global stressors seemed to have passed on Monday and Tuesday, with Greece moving to the sidelines.  Janet Yellen should begin fading out until the next FOMC meeting and Mario Draghi waiting for the new stimulus program to start next month.  The violence in the Ukraine subsided as traders prepared for the return of Chinese investors after the week long New Year holiday.  China’s HSBC Flash Manufacturing PMI rose to 50.1-mark in February from 49.7 levels in January.

The US Dollar Index fell by 0.1 percent yesterday owing to prepared remarks released before her testimony to the Senate Banking Committee where Fed Chair Yellen said it was “unlikely” that economic conditions would warrant an interest rate increase for “at least the next couple of FOMC meetings”.

Also, the release of downbeat U.S. consumer confidence data from the nation acted as a negative factor. The currency closed at 94.56 on Tuesday. The greenback is holding firm at 94.44 in the Asian session.

Gold tumbled to close below the $1200 price but gained quickly this morning as Chinese buyers bought up the cheaper metal. Gold gained $11.50 in the morning session to trade at 1208.80 but is expected to ease back down as European markets open.  Silver is following gold rebounding 385 points to reach 16.618 while platinum kept pace with gold adding just under $12 to trade at 1175.00. Gold prices traded lower by 0.2 percent yesterday after Federal Reserve Chairwoman Janet Yellen was positive about the economy’s performance, even as she appeared to temper any expectations of an imminent rate increase. Yellen said on Tuesday that while the Fed is preparing to consider rate hikes on a “meeting-by-meeting basis”, an increase is not likely for at least the next couple of meetings.

Data from the International Monetary Fund showed that the euro zone raised its gold holdings by 7.437 tonnes to 10,791.885 tonnes in January while Turkey slashed its bullion reserves.

Gold(15 minutes)20150225070149

Industrial metals and base metals are trading on a mixed note this morning with the Chinese back in the markets. Copper fell 15 points but remains near a recent high at 2.623 and palladium gained $6 to 801.10 trading well above its recent range. Base metals traded higher yesterday on news of Greece securing a bailout extension and renewed strength in oil markets Eurozone financial ministers approved a four-month extension of Greece’s bailout that would prevent a possible exit from the currency union. Rising oil prices also fuelled investor risk appetite.

Copper prices jumped by 1.8 percent and surged to a six-week high on Tuesday after the U.S. central bank chief said it was preparing to consider rate rises on a meeting-by-meeting basis. This morning better than expected HSBC manufacturing PMI report did little to support the metals.  China’s manufacturing activity appears to be exiting its recent contraction, preliminary data from HSBC showed Wednesday. The “flash” version of the HSBC/Markit manufacturing Purchasing Managers Index for February showed a rebound to 50.1 — a four-month high.

Copper(15 minutes)20150225070203

Gold Falls Below $1200

Gold Falls Below $1200
Gold Falls Below $1200
Gold is trading at 1202.90 up by $2.10 in the quiet Asian session with Chinese traders still on holiday. On Monday gold fell below the $1200 price level as traders grew bored with the Greece fiasco. Market attention has shifted to focus on Janet Yellen’s testimony before the US Senate Banking Committee which will start later in the North American session.  Gold steadied on Monday, bouncing up from a seven week low as the dollar pared gains after weaker-than-expected U.S. data raised doubts about whether the Federal Reserve might raise interest rates this summer. Silver gained this morning taking cues from gold to trade at 16.388 adding 89 points while platinum added $4.50 to trade at 1168.30.

Data showed that U.S. home resales dropped to their lowest level in nine months last month at an annualized rate of 4.82 million units. Gold fell earlier on Monday after euro zone finance ministers late on Friday agreed to extend heavily indebted Greece’s financial rescue for four months, which lifted the dollar and curbed demand for safe-haven assets.

Yellen takes to Capitol Hill and is expected to offer clues about possible interest rate hikes. The minutes of the most recent Fed meeting were released last week, and indicated a reluctance to raise interest rates. Last Friday, the Eurozone finance ministers reached a deal with Athens to extend its bailout funding program. The agreement with the Eurozone FM require Greece to provide an initial list of reform measures by Monday, and as promised by FM Yakis Varoufakis. The task of providing its own list of reforms may prove arduous for Athens, keeping in mind the Greek electorate had rejected the harsh reforms as conditions for bailout assistance and agreed by the previous government. Any going back on the promise may spell further disaster for Greece. While Hedge funds and money managers cut their bullish stance in gold and options for a third straight week.

Gold(15 minutes)20150224062115

Hedge funds and money managers cut their bullish stance in gold futures and options for a third straight week, taking it to a six-week low in the week to Feb. 17, data showed on Friday.

Industrial metals are diverging in the Asian session; with Chinese traders out of the market demand is much lower than usual. Palladium gained to trade at 789.40 while copper declined on negative housing data from the US and the strength of the US dollar. Copper is at 2.575 down 13 points. Copper settled down -0.25% as it continued to decline on surplus concerns after inventories monitored by the LME rose to their highest level in over a year. LME copper inventories have increased 69% this year. The overall mood on copper remains gloomy, given China’s slowing growth and struggling property sector. While Global miner BHP Billiton posted a 31 percent drop in half-year profit as prices for all its main products collapsed, but beat market forecasts and flagged further belt tightening to withstand the tough conditions.

Can Anyone Understand The Moves In Gold?

Can Anyone Understand The Moves In Gold?
Can Anyone Understand The Moves In Gold?
Gold traded at 1207.40 remaining in the red after oil prices remained elevated and the hopes that the agreed upon cease fire in the Ukraine will also start on Friday. Traders have become bored with the Greek officials that are playing to the headlines offering little of substance. The possibility of a Grexit no longer spooks the markets and is almost inevitable.  Gold remained close to $1200.00 after the sudden fall before the Chinese markets closed for Chinese New Year and appreciated marginally to $1206 in early trading today.

Gold remains flat as confusion over Greece’s debt negotiations with its European lenders dominated markets. Financial markets had been under pressure as Eurozone finance ministers were unable to agree with Greece a final statement or a way to continue talks until their next meeting on Monday to extend an international bailout.

Gold’s sell-off for much of this week, despite the Greek debt crisis, suggests that markets are either expecting an ultimately positive result, or they may be discounting the country’s possible exit as a net positive.

An interest rates hike by the U.S. central bank, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further strengthen the dollar and in turn hurt demand for bullion, a non-interest-bearing asset.

Gold(15 minutes)20150220064809

India is likely to remain the world’s biggest gold consumer this year after regaining the top spot from China in 2014, driven by robust jewellery demand, the World Gold Council (WGC) said. Indian consumer demand for gold jewellery and investment totaled 842.7 tonnes last year, compared with 813.6 tonnes by China, according to WGC data. Demand dipped in both countries in 2014 from record levels a year earlier, but Indian demand slid only 14 percent, compared with a much steeper 38 percent fall in China.

Silver continued to diverge from gold adding 64 points to trade at 16.445 well below its trading range near the $17 price level. Platinum is flat at 1170.00.

Base metals are easing a bit but taking advantage of the dip in the US dollar. Copper is holding at 2.61 down 5 points after a steady recovery this week. Copper prices gained as investors cheered reports of a cease-fire agreement between Russia and Ukraine. Russian President Vladimir Putin confirmed that a cease fire deal with Ukraine starting February 15 had been reached, following months of violence. Meanwhile, ongoing expectations for the Federal Reserve to start raising interest rates by mid-2015 capped gains. 

Gold & Silver Climb After Fed Minutes

Gold & Silver Climb After Fed Minutes
Gold & Silver Climb After Fed Minutes
Gold jumped in the morning session adding $15.90 after the FOMC indicated that is was not hurrying to raise interest rates destroying investors’ hopes. Gold moved up to 1216.10. Yesterday gold was flat as confusion over Greece’s debt negotiations with its European lenders dominated markets. Financial markets had been under pressure as euro zone finance ministers were unable to agree with Greece a final statement or a way to continue talks until their next meeting on Monday to extend an international bailout. Gold’s sell-off for much of this week, despite the Greek debt crisis, suggests that markets are either expecting an ultimately positive result, or they may be discounting the country’s possible exit as a net positive.

An interest rates hike by the U.S. central bank, which has kept rates near zero since 2008 to stimulate the U.S. economy, could further strengthen the dollar and in turn hurt demand for bullion, a non-interest-bearing asset. India is likely to remain the world’s biggest gold consumer this year after regaining the top spot from China in 2014, driven by robust jewelry demand, the World Gold Council (WGC) said. Indian consumer demand for gold jewellery and investment totaled 842.7 tonnes last year, compared with 813.6 tonnes by China, according to WGC data. Demand dipped in both countries in 2014 from record levels a year earlier, but Indian demand slid only 14 percent, compared with a much steeper 38 percent fall in China. The two countries accounted for over half of global demand.

Global gold demand also hit a five-year low last year as buying of jewellery, coins and bars failed to keep pace with 2013’s elevated levels, the WGC said

Silver jumped 390 points to 16.655 taking cues from gold in the Asian session after range trading on Wednesday. Silver prices remained in the range as European leaders failed to agree on Greece’s bailout program after talks in Brussels. Prices rose earlier after more stimulus from the Swedish central bank. The Riksbank lowered its repo rate to minus 0.10 percent from zero and said it will also make policy “more expansionary” by soon buying 10 billion kronor ($1.2 billion) in government bonds with maturities of one to five years. Core retail sales, which exclude automobile sales, slumped by 0.9% in December, disappointing forecasts for a 0.4% decline. Platinum marched to the same band but saw a bit less momentum than gold to trade at 1182.20.

Gold(15 minutes)20150219063554

Copper(15 minutes)20150219063620Industrial metals were a bit more positive on Wednesday but eased in the Asian session this morning. Copper dropped 9 points to trade at 2.611. Copper prices gained as investors cheered reports of a cease-fire agreement between Russia and Ukraine. Russian President Vladimir Putin confirmed that a cease fire deal with Ukraine starting February 15 had been reached, following months of violence. Market sentiment remained subdued after talks between Greece and European Union officials ended without an agreement, though both sides said there was still hope for a deal. Further talks are due to be held next Monday.  Copper prices rose by 0.7 percent on Wednesday as bulls took advantage of Chinese investors being absent due to the week-long Lunar New Year holiday. Chinese funds helped drive a rout on copper markets last month that sent prices spiraling down to the lowest levels in 5-1/2 years amid worries about a slowing Chinese economy and surging copper inventories.

 

Is There A Correlation Between Energy And Metal Prices?

Is There A Correlation Between Energy And Metal Prices?
Is There A Correlation Between Energy And Metal Prices?

Is there a correlation between the price of oil and that of metals?

As oil prices rose this week to new 2015 levels the price of gold and silver continued to plunge. Gold fell to trade at 1207.30 in the Asian session this morning as China leaves for the long Lunar holiday.  Gold and silver fell to six-week lows, while platinum fell to the lowest since 2009, on signs that Greek banks will continue to get emergency funding despite a breakdown in debt talks between their government and euro zone partners. Silver fell to trade at 16.46 well below its average trading range in February near the $17.50 level. Silver tumbled 5.2 percent to a six-week low. Platinum tumbled well below the $1200 price level and continues in the red this morning at 1173.80.

An official in the know with the matter told Reuters the European Central Bank was unlikely to pull the plug on funding for Greek banks this week, raising hopes that policymakers will eventually break the impasse to strike a deal. The ECB is set to decide on Wednesday whether to maintain emergency lending to Greek banks.

Investors typically seek safety in bullion during economic uncertainties and when riskier assets such as equities take a hit. But hopes that a compromise would eventually be reached between Greece and international lenders deterred investors from increasing their exposure to gold. The broader market sentiment also was not in panic mode and the euro recovered from initial losses on signs Greek banks will continue to get emergency funding despite a breakdown in debt talks between Athens and euro zone finance ministers.

Gold(15 minutes)20150218063854

Silver(15 minutes)20150218063904Base metals are also in the red this morning. Although prices have stabilized since January, calling for a bottom right now would just be a guess. It would be no more reliable than flipping a coin, especially since it’s in a period of extreme volatility where the psychology of market participants is what determines the price. Oil crashed in 2014 before industrial metals fell significantly. Now, many industrial metals are near key support levels. At the same time that oil is trying to make a comeback. Analysts believe that oil failing to make a comeback could make industrial metals keep on falling for the rest of the year. London copper slipped yesterday under some pressure from a slightly stronger dollar, with traders winding down positions on the last full trading day before the Lunar New Year. Copper dipped 18 points to trade at 2.569 after climbing over the 2.60 level last week. Palladium is down $4.10 at 778.40. The only thing that is clear in the metals markets is that oil and the dollar will play a key role in the performance of industrial metal prices in 2015.

 Copper(15 minutes)20150218063915

Gold Flat, Silver Down, Copper Steady

Gold Flat, Silver Down, Copper Steady
Gold Flat, Silver Down, Copper Steady
Gold remains near its lowest price in its current trading range at $1226.90 with little activity in the Asian session and showing very little reaction to the news from the Eurozone as no agreement could be reached with Greece. As traders prepare for China’s adjournment from the markets demand for gold is expected to wane beginning Wednesday as the Lunar New Year’s begins. Traders were monitoring buying interest in the world’s second-biggest gold consumer, China, before the country goes on a week-long holiday from Wednesday for the Lunar New Year. Gold jewelry and bars are popular for holiday gift-giving, and trading on the exchange is an indicator of demand. Buying has been robust ahead of the holiday, though some traders said sales were still lower compared with last year.

Gold is up 3.7 percent this year amid concern that Greece may run of out funds, and as central banks in Europe and Asia announced more stimulus to bolster growth. Euro-area ministers are trying to strike a deal to keep Greece afloat beyond the end of the month, when its existing bailout program expires. Markets in China will be shut from Wednesday for the Lunar New Year holiday, and volumes for the Shanghai Gold Exchange’s benchmark spot contract fell 18 percent on Monday from Feb. 13.

“Gold recovered last Friday after disappointing U.S. data and it is relatively well supported, given the still ongoing risks in Greece,” Commerzbank analyst said.

“Liquidity will be relatively low today in the absence of U.S. players and during the rest of the week, with Chinese players out of the market from Wednesday,” because of the Lunar New Year holiday.

The meeting produced no results; there are concerns that Greece will be headed for a credit crunch that would force it out of the Eurozone. Broader sentiment towards gold remained bearish as the outlook for the dollar was still upbeat, with many investors continuing to price in an interest rate increase by the Federal Reserve some time this year. Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the U.S. economy, could hurt demand for non-interest-bearing metals. Silver missed its cues from gold and tumbled 119 points to trade at $17.175 in the bottom of its trading range. Platinum saw a huge drop to trade at $1202.95 as traders sold off the metal after last week’s gains.

Gold(15 minutes)20150217060845

Platinum(15 minutes)20150217060937In other metals copper eased a bit after trading above the 2.61 price enjoying steady gains over the past few days.  Unexpected weakness in the US dollar which fell this morning to 94.33 is giving metals a leg up. Copper is at 2.608. In a commodity research note put out on Friday, Commerzbank admits that copper prices fell at the end of last month to five-and-a-half-year lows on the back of pressure from falling oil prices, concern over an economic slowdown in China, rising inventories and pressure from “speculative financial investors.”  “In our opinion, copper has now been oversold and many risks are already priced in,” the firm states in its report. “Any shift in sentiment among speculative financial investors would no doubt contribute to significantly rising copper prices.”

Copper(15 minutes)20150217060911

Gold, Silver & Platinum Trading In The Green

Gold, Silver & Platinum Trading In The Green
Gold, Silver & Platinum Trading In The Green
Precious metals are trading in the green as the new week kicks off. Traders are preparing for the final meeting between Greece and the Eurogroup. At present this is the last scheduled meeting ahead of the Feb 28th deadline as the bailout agreement ends and will leave Greece without funds.  Most investors believe that an agreement will be reached as Greek officials seem to be throttling back on their rhetoric. The US dollar has been easing since last Thursday after lackluster data brought into question the timing for an interest rate increase, although Fed speakers seem to be heading towards a June shift. Traders will closely monitor the Federal Reserve Minutes release on Wednesday.  Gold added $4.80 to trade at 1231.90 while silver gained 19 points to reach 17.313 staying dead center of its 2015 trading range between $17-17.50. Platinum soared adding $8.50 to reach 1216.20.

The US Dollar Index declined by 0.6 percent last week as weak U.S. retail sales and jobless claims data weighed on the currency. However, owing to the renewed concerns of Greece’s debt restructuring as talks got underway, ending the day nearly exactly where they began. The currency touched a weekly low of 93.68 and closed at 94.28 on Friday. This morning the greenback is trading at 94.07.

Gold(15 minutes)20150216074040

Gold traded lower for most of the last week with prices making a low of 1216.45 and high of 1245.80. Rise in the dollar offset the supportive impact of concerns over Greece’s future in the euro zone and fears over escalating violence in Ukraine, which hurt risk appetite. Expectations of an interest rate rise in the United States weighed on investor sentiment. The Fed should raise interest rates in June, a top Fed official said last Tuesday, saying the U.S. economy was strengthening and inflation would move back to the central bank’s target. Sweden’s Riksbank unexpectedly cut its key repo rate into negative territory and said it would soon buy bonds worth 10 billion Swedish crowns, catching investors off guard and prompting a flight to safety. Global shares rose as investors welcomed a ceasefire agreement between Russia and Ukraine easing safe haven demands for precious metals.

gold silver copper bnsnlaLast week base metals except copper traded on a negative note owing to concerns over Greece’s sustainability in the EU after caution over a deadlock in talks between Greece and its international creditors. Also, a slowdown in China, as indicated by a string of weak data from the biggest consumer acted as a negative factor. However, sharp losses were cushioned due to rising oil prices coupled with weakness in the greenback. Copper dipped this morning to trade at 2.598 after closing the week above the 2.60 level. The Chinese lunar holiday will begin this week and see traders leaving the markets for a week. Preholiday sales helped boost metals markets. Copper prices gained 0.8 percent last week as a weaker dollar helped extend a recovery from January’s five-year lows. However, physical consumption dimmed ahead of Chinese public holidays that start on Wednesday, but traders said they were reluctant to short copper in case of a surprise interest rate cut by PBOC, after China’s annual consumer inflation hit a five-year low in January, underscoring persistent economic weakness. China’s copper imports fell by 2.4 percent from a month earlier to 410,000 tonnes in January along with gain in LME stocks by 3.8 percent acted as negative factors.

Copper(15 minutes)20150216074053

 

Cease Fire Between Russia & Ukraine Weakens Gold

Cease Fire Between Russia & Ukraine Weakens Gold
Cease Fire Between Russia & Ukraine Weakens Gold
Wall Street climbed in yesterday’s session helped by the positive sentiment from the Ukraine Russia ceasefire agreement, and rising energy prices helping energy stocks. Following the trend seen in the US equities markets, Asian markets are trading on a negative note. European share indexes hit multi-year highs on Thursday, boosted by a Ukraine peace deal and new economic stimulus measures in Sweden.

Confusion over Greece’s debt negotiations with its European lenders dominated markets, drumming up some safe-haven bids for the metal. Gold fell to $1,216.45 its lowest since Jan. 9, before recovering to trade up 0.5 percent at $1,225. Financial markets are under pressure as Greek Finance Minister Yanis Varoufakis played down a failure to reach a common position with the rest of the euro zone and said he believed a “healing deal” on Greece’s finances could be reached on Monday.

Germany’s Merkel says she has ‘no illusions’ after Ukraine deal. She also said that there is a glimmer of hope but concrete steps must of course be taken and there will still be big hurdles ahead. Gold eased as global tensions withdrew. The commodity fell to trade at $1220 but recovered almost $7 in the Asian session to trade at 1227.60 as the US dollar declined on weak economic data. Gold demand hit a five-year low last year as buying of jewelry, coins and bars failed to keep pace with 2013’s elevated levels, particularly in major consumer China, the World Gold Council said on Thursday. But the declining trend in demand, which has fallen every year since its 2011 peak, is likely to turn around in 2015, the WCG’s managing director for investment, Marcus Grubb, said.

Gold(15 minutes)20150213062335

Silver soared 151 points to trade at 16.945 moving close to the $17 price level. Silver is expected to move back to its recent trading range between $17 and $17.50. Platinum added $6.85 to $1206.45. The SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, is holding 773.31 tonnes as per latest available data on their website.

Copper added 14 points as the weak US dollar helped speculators buy up the commodity. Copper is at a recent high of 2.617 as comments and support from the PBoC has also helped support the metal.  Copper prices jumped by 1.4 percent as weaker-than-expected Chinese inflation data ahead of the Lunar New Year had sparked speculation about the measures China may take to support its economy.

Turnover in copper options on the London Metal Exchange spiked last month to its highest in three years, data released on Wednesday showed, as investors rushed to guard against steeper losses during the market’s worst rout in years. Some 321,570 options, including traded average price options known as TAPOs, in the LME’s second-biggest contract by turnover and liquidity traded in January, double the level in the same month last year and almost twice as much as in December, LME data shows.

 

Investors Dumping Gold, Silver & Platinum

Investors Dumping Gold, Silver & Platinum
Investors Dumping Gold, Silver & Platinum
Gold took a major nosedive on Wednesday as Eurozone Finance Ministers and the Greek Finance Minister began meeting to resolve the bailout agreements with Greece. Gold fell to trade at 1219.60 as most speculators grew bored with the situation while tensions in the Ukraine remained at the negotiation table. Russia said yesterday, that they would consider offering loans to Greece but the loans could only be in Russian Rubles. Silver followed gold on its downhill run, and continued to slide on Thursday morning giving up 141 points to trade at 16.62. Platinum added $2.05 in the morning session to reach 1196.00.

Gold futures marked their lowest close in about a month as some investors lost interest in the metal on the back of a stronger U.S. dollar. Investors awaited the outcome of a meeting of euro-zone finance ministers on Greece’s debt obligations to help gauge the next move for financial markets. Gold for April delivery fell 1 percent to settle at $1,219.60 an ounce on Comex. Prices, based on the most-active contracts, haven’t settled at a level this low since January 8.

Gold prices have fallen as a stronger US currency damped investors’ appetite for the dollar-denominated metal. The US dollar advanced against a basket of international currencies as jitters surrounding Greek debt talks saw investors sell euros in favor of the US currency. The greenback touched a two-week high of 95.11. The US dollar is trading at 95.08 in the Asian session.

Eurozone finance ministers said Greece had yet to present a concrete plan for dealing with its debt obligations ahead of an emergency meeting to discuss the country’s debt problems. Greece is quickly running out of cash, with its current bailout running out at the end of February. “There are worries Greece could exit the European Union, which could open the door to other, smaller EU countries doing the same,” Jim Wyckoff, senior analyst with Kitco.com, said in a note to clients.

Gold(15 minutes)20150212043230

Silver(15 minutes)20150212043242While worries about the Eurozone can benefit gold, if investors flock to the precious metal to protect their wealth from turmoil in Europe, a stronger US dollar can offset these shifts. Gold is traded in US dollars and becomes more expensive for investors who use other currencies to fund their purchases.

In other metals this morning copper dipped 2 points following Wednesday’s losses. Copper is trading at 2.540. Copper steadied on Wednesday as some investors bet that a floor had been reached after heavy losses, while tin touched a fresh 2-1/2 year low on worries about weak demand. “Copper is trying to look for a bottom, but there are plenty of things that can go wrong, revolving around Ukraine and Greece in particular, and in the background the concern about the extent of the slowdown going on in China,” said Stephen Briggs, metals strategist at BNP Paribas in London.

Copper(15 minutes)20150212043248

Precious Metals Trade On A Positive Note

Precious Metals Trade On A Positive Note
Precious Metals Trade On A Positive Note
Gold continued to remain on a range with a minor depreciation from yesterday’s levels. Gold gained $4.90 in the Asian session to trade at 1237.10 while silver soared 117 points to trade just a hair under the $17 price. Platinum took cues from the precious metals family and gained $3.45 to trade at 1212.20. Gold prices eased on Tuesday as a rise in the dollar offset the supportive impact of concerns over Greece’s future in the Eurozone and on fears over escalating violence in Ukraine, which hurt risk appetite.

Asian markets are trading mixed today as nervousness over Greece potentially withdrawing from the euro and escalating conflict in Ukraine sapped risk appetite. The greenback fell by 0.3 percent yesterday amid escalating tension between Greece and its euro zone partners over Athens’ efforts to renegotiate the terms of its international bailout. Investors also grew wary over escalating tensions between Ukraine and Russia, thereby reducing demand for the greenback. The probability of Greece leaving the Eurozone has risen several notches as Prime Minister Alexis Tsipras has taken an increasingly hard line over government debt.

Greece potentially withdrawing from the euro and the conflict in Ukraine mounted, weighing on global markets on Tuesday. Investors will now monitor a Greece-dominated meeting of euro zone finance ministers on Wednesday. On the daily basis, traders can expect gold and silver prices to trade lower as strength in the dollar coupled with hopes of rise in the interest rates in the US will exert downside pressure. On the other hand, situation in Greece as well as Ukraine has to be closely monitored for further trajectory of the precious metals pack.

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Investors were also awaiting developments in Europe, where the probability of Greece’s exit from the euro zone has risen in recent days as Prime Minister Alexis Tsipras has taken an increasingly hard line over government debt.  Euro zone finance ministers meet later on Wednesday and EU leaders on Thursday, but officials are already downplaying the chance of a breakthrough.  European Commission President Jean-Claude Juncker told Greece not to expect the euro zone to bow to Tsipras’ demands in a growing confrontation that has rattled financial markets and prompted U.S. and Canadian pleas for calm and compromise.

metals bnsnlaIn the metals market, industrial metals traded on a weak note with copper suffering again in the Asian session falling to 2.547 down by 4 points.  On Tuesday, base metals on the LME traded negative on profit booking at higher levels after the recent rally.  Copper prices declined by 1.2 percent on Tuesday as slowdown in China have raised concerns on the demand side for copper. China’s annual consumer inflation hit a five-year low in January, underscoring persistent economic weakness after the country’s trade performance slumped in January The data adds pressure on policymakers to support growth, though China’s central bank said it will fine-tune policy to head off a slowdown but avoid over stimulating the economy.

Copper(15 minutes)20150211053011

 

Gold Traders Closely Watching Geopolitical Issues

Gold Traders Seem Unconcerned Over Geopolitical Issues
Gold Traders Seem Unconcerned Over Geopolitical Issues

Gold is trading on a flat note in the Asian session on Tuesday at 1243.70 as the commodity continues to ease up after its sharp fall on Friday after the release of US jobs data. Silver dipped 13 points to reach 17.057 diverging from gold in the morning session while platinum mimicked gold’s moves point by point. Platinum is trading at 1221.50 with the Gold/Platinum ratio at a -22$. Gold prices scored their first gain in three sessions as financial turmoil in Greece, weaker-than-expected trade data from China and declines in U.S. equities buoyed the metal’s investment appeal. Last week’s stronger-than-expected data on U.S. jobs, however, kept a cap on any haven-related boost for the metal.

German leaders said they won’t extend more assistance to Greece without strings attached, and the impasse risks leaving Europe’s most-indebted state without funding by the end of this month, when the current bailout expires. Greece will seek about 10 billion euros in short-term financing to stave off the cash crunch, according to a government official who asked not to be identified. Bullion rose 5 percent in 2015, after two years of losses, as investor holdings expanded.

“Political tensions in Greece rejuvenated safe-haven buying,” Australia & New Zealand Banking Group Ltd. wrote in a note. “Already this year, holdings in global exchange-traded products backed by gold have climbed 5 percent, with another strong rise last week.” Bullion got a boost on Monday as stock indices worldwide slipped on fears over Greece and concerns over conflict in Ukraine.  Wall Street and European shares slumped a day after Greek Prime Minister Alexis Tsipras ruled out extending the country’s bailout and said he would reverse some of the reforms imposed by its lenders, raising fears of a Greek exit from the euro zone.

Markets were also eyeing developments in Ukraine. US President Barack Obama signaled on Monday he will wait for the results of high-stakes talks on Ukraine before deciding whether to arm the Kiev government.  Investors tend to bid up gold during times of economic and geopolitical uncertainties.

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Holdings in global exchange-traded products backed by gold rose on Friday to a four-month high, according to data compiled by Bloomberg.

Copper remains flat this week holding at 2.578 as it gyrates close to the 2.58 level reached late last week.  Copper hardly moved on Monday as investors shrugged off worse-than-expected Chinese trade data. A plunge in China’s imports demonstrated that Asia’s largest economy is losing momentum despite stimulus measures. Prices also drew support from a fall in the dollar, which makes commodities priced in the U.S. unit cheaper for holders of other currencies. China’s copper imports fell by 2.4 percent from a month earlier to 410,000 tonnes in January, customs data showed. The Lunar New Year begins on Feb. 19. Metals’ prices remained capped on Greek issue.

Copper(15 minutes)20150210051459

Gold & Oil Trading Up As The New Weeks Begins

Gold & Oil Trading Up As The New Weeks Begins
Gold & Oil Trading Up As The New Weeks Begins
Gold and oil rebounded in the Asian session. Precious metals are trading in the green as political stress levels raised a bit more as talks with Russia over the Ukraine conflict ended without any results and the Greek Premier took an aggressive stance towards the EU and the bailout/austerity requirements in his first major speech since his election. Gold added $2.70 to trade at 1237.30 after falling almost $30 on Friday after a stronger than expected Nonfarm payroll release.  Silver added 41 points to 16.735 while platinum added $1.10 to 1224.95. Greece’s Tsipras vowed to increase the minimum wage and halt infrastructure privatizations on Sunday, putting him on a collision course with creditors before an emergency meeting with euro-area finance ministers. Ukraine’s almost yearlong conflict enters a pivotal week with discussions to resume on Monday in Berlin aimed at preparing a summit for the leaders of Germany, France, Russia and Ukraine in Minsk, Belarus, on Feb. 11.

Gold traded in a narrow range in the early part of last week. But prices declined sharply on Friday. The global spot gold price moved between $1,255 and $1,286 per ounce through last week before declining to 1,228.48 in the final session. The US non-farm payroll increasing by 257,000 in January and a sharp revision in the payroll data for November and December triggered this fall. Also, the average hourly earnings of employees rose 2.2 per cent on a year-on-year basis after falling to 1.9 per cent in December. All this positive data overshadowed the rise in unemployment rate to 5.7 per cent in January from 5.6 per cent the month earlier.

This week will be very light for economic data releases from the US. The retail sales data on Thursday is the only important number from the US, apart from the regular weekly jobless claims that would be released on the same day. The dollar index is trading at 94.68. The outlook is bullish. A strong break above the immediate resistance at 95 can take the index higher to 95.65 in this week. Further surge in the dollar index could keep the gold price under pressure in the short term.

Gold(15 minutes)20150209061655

Helping lower market stress was a climb in oil prices. This morning crude oil added 60 cents to 52.30 while Brent oil gained 33 cents to 59.01. Speculators cheered signs of a dip in North American crude production, while a robust US jobs report also provided support, analysts said.  A survey by US oil services firm Baker Hughes released Friday showed the number of rigs drilling for oil in the United States fell 83 to 1,140 in the week to February 6. The dip followed a cut of 94 rigs in the previous week.  Bloomberg News reported that the rig count was standing at its lowest level since December 2011.  The drop, coupled with announcements of deep cuts in capital spending by major oil companies including BP and BG Group, suggests there will be tighter supplies in the future.  Oil prices have plunged by about 50 per cent from their June peaks, largely owing to a surge in global reserves boosted by robust US shale production.

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Brent Oil(15 minutes)20150209061725 

Growth in Auto Sales Driving Pushing Palladium Demand

Palladium Demand Increasing Growth In Auto Sales
Palladium Demand Increasing Growth In Auto Sales

Gold continued to tumble this week as the tense economic situation in Greece seems to find common ground. Gold is trading at 1263.20 recovering just under $3 as traders took advantage of this week’s decline. Silver remains in a tight range holding around the 17.50 range to trade this morning at 17.315 down by 6 points diverging from gold. Platinum is at 1238.25 in the green in the morning session. Palladium is the big gainer up by $2.70 to reach 788.80 after strong print in auto sales on Tuesday.  Fueled by low gasoline prices and easier credit, the U.S. auto industry pulled its recent winning streak into 2015 with a nearly 14% January sales increase and over half of sales comprised of high priced pickups and sport-utility vehicles. The momentum, which includes double-digit percentage sales increase for each of the Detroit Three car makers.

Automakers were up as well on strong U.S. sales in the month of January. General Motors led the way with an 18% jump in sales, followed by Ford and Nissan each of which saw a 15% jump in January, and Chrysler with 14%. Trucks and SUVs were the big winners. Ford’s new F-150 had its best month since the truck set a sales record in January of 2004. Palladium is poised to outperform again in 2015, with prices seen rising six percent even as the wider precious metals complex struggles, a Reuter’s survey showed on Tuesday. Palladium’s sister metal platinum is facing a third year of losses, however. The metal, widely used in autocatalysts, is expected to benefit from robust demand for new cars, investment buying, and threats to supply in both South Africa, which has seen a wave of strikes in recent years, and sanctions-hit Russia.

Palladium outperformed other precious metals to rise 11 percent in 2014, but has failed to keep pace with the sector’s gains so far in January, easing nearly 2 percent as gold hit five-month highs and platinum looked set for its best month in nearly a year.

Palladium(60 minutes)20150204075828

Copper is trading at 2.587 climbing off its recent bottom. Copper swung between gains and losses after posting its biggest advance in 21 months as signs of slower expansion in China supported speculation the government will stimulate growth in the world’s largest user of the metal. The metal rose as much as 1.1 percent and fell as much as 0.4 percent. A gauge of China’s services industry slipped to a six-month low, data released Wednesday showed. Similar measures of the euro region and U.S. are due later in the day.

Copper(15 minutes)20150204062323

 

Gold Easing A Bit This Week As Traders Consider FOMC Rate Increase

Gold Easing A Bit This Week As Traders Consider FOMC Rate Increase
Gold Easing A Bit This Week As Traders Consider FOMC Rate Increase
Gold continued to trade on a negative bias falling $2.30 to trade at 1274.60 in the Asian session. Silver followed gold in the red at 17.205 while platinum and palladium gained. Platinum is trading at 1232.10 up by $2.60 while palladium gained $1.80 to 788.30. There was no decisive direction in the metals markets this morning.  On Monday, after showing a good recovery last week gold prices also traded on sideways note due to lack of any major fundamental trigger.

The Greek newly elected government is on a whirlwind tour touting their new economic plans trying to secure the backing of major EU members.  Greek Finance Minister Yanis Varoufakis will tell major investors and bankers later on Monday that Greece will be able to service its debt with no damage done to private investors, a source with knowledge of the matter said. The source said Varoufakis planned to meet about 100 banks and financial institutions at an event later on Monday. “We will be able to service the Greek debt on terms that will have no detrimental impact on, especially private, bond holders,” said the source. Germany is insisting that existing regulations and terms attached to financial assistance granted are binding for the new Greek government just as for it predecessor. Athens must respect the contractual commitments entered into by the former government. Elections do not change Greece’s debt in any way. On these points the German government, the Eurozone ministers of finance and the European Commission are in full agreement.

Gold steadied near $1,280 an ounce on Monday, after posting its biggest monthly gain in three years, as a shaky outlook for the global economy preserved bullion’s safe-haven draw. A pair of surveys showed China’s factory sector struggled in January, adding to worries over the global outlook after US gross domestic product marked a sharp slowdown in the fourth quarter.

Gold futures fell for the third time in four sessions on concern that U.S. policymakers will raise interest rates amid signs of economic growth. Sales of American Eagle gold coins by the U.S. Mint fell 11 percent last month from a year earlier.

Gold(15 minutes)20150203063455

Silver(15 minutes)20150203063549A statement from the Federal Reserve last week that cited “solid” U.S. growth damped speculation that the central bank would delay raising interest rates. The next day, gold tumbled 2.4 percent, the most since December 2013. The metal jumped 8 percent in January as officials in Europe and Asia announced stimulus to bolster stagnating economies.

Industrial metals are trading on a positive note on Tuesday morning paying little attention to the lackluster manufacturing PMI reports from China and the US. Copper gained 23 points this morning to reach 2.524.  Copper emerges as the apparent bear stand-out in the latest Reuters poll of base metals analysts. What was once the darling of the investment community is the only metal expected to average a lower price both this year and next year relative to 2014. But a closer look at the details of the poll reveals that even copper’s prospects are not as gloomy as might be expected from the current bear cocktail of China slowdown, surging supply and dollar strength.

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Platinum(15 minutes)20150203063533