Oil falls in Asia after U.S. GDP report

             Crude Oil futures fell in the early part of Monday’s Asian session as traders digested a couple of slack U.S. data points that were delivered last Friday. 

On the New York Mercantile Exchange, light, sweet crude futures for June delivery fell 0.47% to USD92.56 per barrel in Asian trading Monday. Despite settling lower by 0.8% last Friday, Nymex oil futures rose 5% on the week, the biggest weekly advance since June.

U.S. data points helped force crude lower in Friday’s session. In U.S. economic news, the Commerce Department said U.S. GDP grew 2.5% in the first quarter, missing the consensus estimate of 3% growth. 

The Thomson Reuters/University of Michigan Survey of consumer confidence fell 2.8% to 76.4 in April. That reading is the same as April 2012. Economists expected a reading of 73.5. The U.S. is the world’s largest oil consumer and reports such as employment, GDP and consumer data are viewed by traders as pivotal to oil’s upside. 

Gold off to strong start in Asian trade

              Following a lackluster performance in the U.S. last Friday, gold futures started the week in solid fashion during Monday’s Asian session. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery rose 0.66% to USD1,463.15 per troy ounce in Asian trading Monday. Despite last Friday’s flat performance, gold futures gained 4.2% on the week. 

Gold prices were likely to find support at USD1,403.75 a troy ounce, the low from April 22 and near-term resistance at USD1,484.75, Friday’s high. 

Traders pushed gold higher amid some lethargic U.S. data points published early Friday. In U.S. economic news, the Commerce Department said U.S. GDP grew 2.5% in the first quarter, missing the consensus estimate of 3% growth. 

The Thomson Reuters/University of Michigan Survey of consumer confidence fell 2.8% to 76.4 in April. That reading is the same as April 2012. Economists expected a reading of 73.5. 

Two weeks ago, bullion plunged to a 27-month low, but futures have surged nearly 10% since then, buoyed by strong physical demand. The U.S. Mint has sold 208,500 troy ounces of gold coins so far in April, the highest since December 2009 and up more three-fold from the 62,000 troy ounces the Mint had sold in all of March. 

There have also been signs that investors in China and India, two of the world’s largest gold consumers, stepped into the market to take advantage of lower prices. 

Reports of central bank buying also benefitted sentiment. Russia, Turkey and Kazakhstan all added to their gold reserves in March, according to International Monetary Fund data released earlier in the week. 

Still, there is some doubt regarding the physical buying that has supported bullion in recent days will continue. Some traders believe Indian consumers merely bought gold in April that would have been purchased in May due to the price decline. Additionally, data from the U.S. Commodity Futures Trading Commission indicate net long positions on gold have fallen 25%. 

Meanwhile, Comex silver for May delivery jumped 0.93% to USD24.010 per ounce while copper for May delivery slid 0.74% to USD3.163 per ounce. - investing.com

Silver futures trim gains after dismal German IFO data

                          Silver futures trimmed gains during European morning hours on Wednesday, coming off the highest levels of the session after data showed that German business confidence in April weakened to a four-month low.

On the Comex division of the New York Mercantile Exchange, silver futures for May delivery traded at USD22.94 a troy ounce during European morning trade, up 0.6% on the day.

Comex silver prices rose by as much as 2.1% earlier in the session to hit a daily high of USD23.31 a troy ounce. 

Silver prices were likely to find support at USD22.47 a troy ounce, the low from April 18 and near-term resistance at USD23.69, the high from April 22.

Futures trimmed gains as the euro fell sharply against the U.S. dollar after weak German business confidence data fuelled expectations for a rate cut by the European Central Bank.

Crude oil futures rise to 7-day high ahead of U.S. supply data

                  Crude oil futures extended the previous session’s gains to hit a seven-day high on Wednesday, as investors looked ahead to closely-watched weekly supply data on U.S. stockpiles of crude and refined products from the U.S. Energy Information Administration later in the day.

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On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded at USD89.77 a barrel during European morning trade, up 0.65% on the day. 

New York-traded oil rose by as much as 0.8% earlier in the session to hit a daily high of USD89.86 a barrel, the strongest level since April 15.

Oil traders awaited data from the U.S. government on oil and fuel supplies later in the day to gauge the strength of demand from the world’s largest oil consumer.

The report was expected to show that U.S. crude oil stockpiles increased by 1.5 million barrels last week, while gasoline inventories were forecast to fall by 0.2 million barrels.

After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories fell by 0.9 million barrels last week, confounding expectations for an increase of 1.6 million barrels.

Gasoline stocks dropped 2.7 million barrels, defying expectations for a 0.5 million barrel increase.

The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand. 

Elsewhere, on the ICE Futures Exchange, Brent oil futures for June delivery rose 0.5% to trade at USD100.84 a barrel, with the spread between the Brent and crude contracts standing at USD11.07 a barrel.

The European benchmark has been under heavy selling pressure in recent sessions, amid growing concerns over the euro zone’s economic outlook. 

Wall Street investment bank Goldman Sachs cut its three-month outlook for Brent to USD100 a barrel from USD110 and lowered its 2013 forecast to USD105 from USD110, citing concerns over Chinese oil demand prospects. - investing.com

Gold futures up more than 1% on strong physical demand

                    Gold futures rebounded from the previous day’s losses on Wednesday, gaining more than 1%, as prices remained supported by a rush in physical buying in the U.S. and Asia.

Gains were limited as investors remained hesitant to buy into the market amid a shaky technical outlook.

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On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,428.35 a troy ounce during European morning hours, up 1.4% on the day.

Comex gold prices rose by as much as 1.5% earlier in the session to hit a daily high of USD1,429.45 a troy ounce. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16. 

Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and near-term resistance at USD1,440.10, the high from March 7, 2011.

Copper drops to 18-month low as poor China, Germany PMI weigh

                   Copper futures fell to the lowest level since October 2011 during European morning hours on Tuesday, as weak manufacturing data out of China and Germany added to concerns over the global economic outlook.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

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On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.082 a pound during European morning trade, down 1.6% on the day.

New York-traded copper prices fell by as much as 2% earlier in the session to hit a daily low of USD3.059 a pound, the weakest level since October 5, 2011.

Gold jumps up on technical demand, soft U.S. housing data

                     Gold prices shot up in U.S. trading on Monday amid technical demand after investors began to view the commodity as oversold and rebalanced support levels higher than those from recent weeks.

Softer-than-expected housing numbers in the U.S. also pushed up prices.

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On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 1.94% at USD1,422.65 a troy ounce in U.S. trading on Monday, up from a session low of USD1,403.55 and down from a high of USD1,438.35 a troy ounce.

Gold futures were likely to test support USD1,403.55 a troy ounce, the earlier low, and resistance at USD1,590.05, the high from April 9.

Gold prices have dropped in recent months amid concerns that a more robust recovery in the U.S. will prompt the Federal Reserve to soon wind down stimulus tools, which weaken the dollar to spur investing and recovery.

Crude ignores U.S. home sales, gains on G20 green light on Japan easing

              Crude Oil prices rose on Monday after investors shrugged off disappointing housing data in the U.S. and applauded a G20 decision to voice no opposition to Japan's monetary easing measures.

On the New York Mercantile Exchange, light sweet crude futures for delivery in June traded up 0.91% at USD89.07 a barrel on Monday, off from a session high of USD89.42 and up from an earlier session low of USD87.72.

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Japan has rolled out massive monetary stimulus measures to steer the country away from deflationary decline and more towards growth, though G20 officials recently said they did not oppose such measures.

Monetary stimulus tools tend to weaken currencies, though industrialized nations said they won't oppose Japan's policies after concluding the country is not easing policy to give itself an unfair advantage in global trade markets.

Gold futures surge 2% to hit 1-week high on technical buying

            Gold futures were higher for the fourth consecutive day on Monday, moving further off last week’s two-year low as a bout of technical buying kicked in after prices broke above a key resistance level. 

Some bargain buying and indications of mounting physical demand in Asia and the U.S. also contributed to gains.

www.orangecommodities.com

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,424.15 a troy ounce during European morning hours, up 2.1% on the day.

Comex gold prices rose by as much as 2.3% earlier in the session to hit a daily high of USD1,427.15 a troy ounce, the strongest level since April 15. Comex gold fell to a 27-month low of USD1,322.25 an ounce on April 16.

Crude Oil Range Bound Ahead Of Chinese Data

                     Crude oil is trading at 88.69 up by 42 cents as traders await tomorrow’s HSBC Chinese PMI data. Last week disappointing Chinese data sparked a global commodities sell off seeing gold tumbled the most in 30 years while crude oil fell close to $6.00 in a single day. Crude oil climbed back above $88 per barrel, as traders mulled the prospects for an output cut from the OPEC Countries after a recent slump in prices left oil with a loss of almost 4% on the week.

www.orangecommodities.com

Even after posting the biggest gain since March 26, a decline in oil prices is expected to carry on throughout the week amid lingering worries about higher crude supplies in the United States and signs of lower global demand. Most importantly, the trading sentiment towards commodities and energy precisely was strongly rippled last week by a round of downbeat projections for global oil demand, with lower growth for 2013 predicted by the IEA, EIA and the OPEC.

The International Monetary Fund trimmed its global economic growth forecast for 2013. The group has cut growth in the U.S., the world`s top oil consumer to 1.9 percent from 2 percent. China, the world`s second-top consumer, was cut to 8 percent from 8.2 percent.

Gold rises as hedge funds boost long bets

                    Gold futures are trading higher in the early part of Monday’s Asian session as some hedge funds and other speculators are seen increasing their long bets on the yellow metal despite last week’s dismal performance. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery advanced 0.66% to USD1,404.85 per troy ounce in Asian trading Monday. The good start to the week comes after bullion plunged in the first two trading days of last week and finished down 5.4% for the week, good for the fourth weekly slide in a row. 

www.orangecommodities.com

Gold prices were likely to find support at USD1,322.25 a troy ounce, the low from April 16 and a 27-month low and near-term resistance at USD1,425.55, Friday’s high. 

Fund managers and other traders raised their net long exposure to gold by 9.8% to 61,579 futures and options in the week ending April, according to data from the U.S. Commodities Futures Trading Commission. 

Natural gas surges to 21-month high after bullish U.S. supply report

              Natural gas futures erased losses to touch a 21-month high during U.S. morning hours on Thursday, after a report from the U.S. Energy Information Administration showed natural gas supplies rose less-than-expected last week.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.319 per million British thermal units during U.S. morning trade, up 2.5% on the day.       

Nymex gas prices fell by as much as 1% earlier in the day to hit a session low of USD4.173 per million British thermal units, before retracing losses to touch a daily high of USD4.333, the strongest level since July 28, 2011. 

The May contract traded at USD4.179 prior to the release of the U.S. Energy Information Administration report.  

Copper futures at lowest since October 2011 on demand concerns

            Copper futures fell to the lowest level since October 2011 during European morning hours on Thursday, as global growth concerns continued to weigh on the industrial metal.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.153 a pound during European morning trade, down 1.1% on the day.

New York-traded copper prices fell by as much as 3.5% earlier in the session to hit a daily low of USD3.065 a pound, the weakest level since October 20, 2011.

Concerns over the global economic outlook intensified earlier in the week after the International Monetary Fund cut its 2013 forecast for global growth to 3.3%, down from its January projection of 3.5%. 

Gold futures down again; market remains vulnerable to further selling

                      Gold futures were lower during early European trade on Thursday, re-approaching a 27-month low hit earlier in the week as sentiment on the precious metal remained bearish.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,374.35 a troy ounce during European morning hours, down 0.6% on the day.

Comex gold prices fell by as much as 2% earlier in the session to hit a daily low of USD1,337.25 a troy ounce. Comex gold fell to USD1,322.25 an ounce on Tuesday, the weakest level since January 28, 2011.

Gold prices were likely to find support at USD1,322.25 a troy ounce, the previous session’s low and near-term resistance at USD1,395.05, the previous session’s high.

Gold prices have lost nearly 13%, or almost USD200 per ounce, since last Friday, as investors exited the market after prices broke below key support levels. 

Oil falls despite Beige Book report

                      Crude Oil futures traded lower in the early part of Thursday’s Asian despite some decent comments in the Federal Reserve’s Beige Book report published Wednesday. 

On the New York Mercantile Exchange, light, sweet crude futures for June delivery dropped 0.53% to USD86.50 per barrel in Asian trading Thursday after sliding 2.24% to USD87.04 a barrel on Wednesday in the U.S. 

Crude Oil and other riskier assets such as U.S. stocks plunged after the International Monetary Fund pared its outlook for global economic growth this year. 

On Wednesday, the IMF trimmed its 2013 world economic growth forecast to 3.3%, down from a January projection of 3.5%, while the multilateral lending institution's 2014 growth forecast fell to 4.0% from 4.1%. 

Later Wednesday, the Fed’s Beige Book report, which surveys the central bank’s 12 regional districts, indicated those regions have seen modest economic improvement since late February. 

Gold Miners Lose $169 Billion as Price Slump Adds ETF Pain

                                Gold producers, ignored as global stocks rebounded in the past two years and investors turned to exchange-traded funds that track bullion, face closing mines or shutting themselves down after the metal’s worst slump in three decades this week made 15 percent of miners unprofitable.

Barrick Gold Corp. (ABX) and Newmont Mining Corp., the world’s two largest producers, are among companies in the FTSE Gold Mines Index (FTMIGMI) that have collectively lost about $169 billion in market value since bullion peaked in 2011. Gold equities are trading at the lowest level relative to gold in at least 20 years after the metal’s 14 percent plunge so far in April.

“Any company that hasn’t been focused on efficiencies and costs for the last three to four years is going to fail in this market,” said Gavin Thomas, chief executive officer of Sydney- based gold miner Kingsgate Consolidated Ltd.This month’s futures price drop to as low as $1,361.10 an ounce brings gold closer to the global average production cost of about $1,200 an ounce, according to Nomura Holdings Inc. That puts producers such as Canada’s Semafo Inc. and Golden Star Resources Ltd. at risk of mine closures or “financial distress” if prices fall to that level, according to Macquarie Group Ltd. Tanzania, Africa’s fourth-largest gold-producer, said a sustained slump may shut mines there.

Gold’s 9.3 percent plunge on April 15, the biggest one-day drop in New York since March 1980, couldn’t have come at a worse time for gold companies.

Rising Costs

Despite 12 consecutive years of rising gold prices, shareholders have lost faith in the gold-mining industry, which has seen soaring production costs and made money-losing acquisitions. Investors have instead flocked to exchange-traded funds, or ETFs, such as the SPDR Gold Trust, which are backed by bullion and track the price of the metal.

The FTSE gold index, which tracks 27 of the largest producers, has plunged 58 percent to yesterday since bullion hit a record on Sept. 6, 2011. Over the same period, the MSCI All Country World Index (MXWD), which tracks 2,431 global stocks, climbed 22 percent.

“Gold companies have underperformed the gold price for more than the past 20 years, quite simply because they make as little money today for shareholders as they did at $300 an ounce,” Brenton Saunders, who helps manage about $600 million at Taurus Funds Management Pty., said from Sydney.

Starved of fresh capital, smaller mining companies that carry out exploration and development were already being squeezed before this week’s price crash. There are too many companies in need of financing and there will be production stoppages as some of them cut expenses, said John Ing, CEO of Toronto-based brokerage Maison Placements Canada Inc.

Geopolitical Risk

“If the price stays where it is, you will see a slew of closures of smaller, non-producing companies and the majors pull way back on any new projects,” said Ken Hoffman, a Princeton, New Jersey-based analyst at Bloomberg Industries.

Companies relying on a single asset and those in Africa, already struggling with deteriorating geopolitical risk over the past year, will find it more difficult to convince banks to fund projects, Tyler Broda, a gold analyst at Nomura in London, said by phone from London on April 16. Tanzania, where Barrick and South Africa’s AngloGold Ashanti Ltd. operate, is concerned that continued price weakness will discourage investment and lead to mine closures, Ally Samaje, acting minerals commissioner, said April 16.

At current prices, “probably 15 percent of global gold miners from our calculations would be under water at the moment,” Broda said. He predicts gold could fall to as low as $1,000 an ounce this year. Gold for June delivery gained $1.70 cents to $1,384.40 an ounce at 5:47 p.m. in Sydney.

Mine Review

“Golden Star, like other gold producers, is assessing the effect of the fall in the gold price on our budget and production plan,” President and CEO Sam Coetzer said in an e- mail. “We are also reviewing the discretionary capital component of our capital plan for 2013.”

Semafo, which mines in West Africa, may close its Samira Hill mine in Niger, Macquarie analysts said in an April 16 note. Sofia St. Laurent, a spokeswoman for Semafo, didn’t immediately respond to phone calls and an e-mail seeking comment. Omar Jabara, a spokesman for Newmont, said the Greenwood Village, Colorado-based company will continue to rein in costs.Andy Lloyd, a spokesman for Barrick, declined to comment on whether the company’s African Barrick Gold Plc unit could shut mines in Tanzania.

Spending Cuts

Some other miners are already contemplating cost reductions. Petropavlovsk Plc, a London-based miner of gold in Russia, may suspend inessential investment plans and cut exploration spending should prices stay weak, Chairman Peter Hambro said April 16 in an interview.

AngloGold Ashanti Ltd. is reviewing each of its 20 operations “to extract operating efficiencies,” said Alan Fine, a spokesman for the Johannesburg-based company. South Africa’s Harmony Gold Mining Co. said its average so-called all- in cost of production in the six months ended Dec. 31 was about $1,446 an ounce.

“We are currently in the next planning cycle and will obviously take the new gold price level into account,” Harmony CEO Graham Briggs said in e-mailed comments.

To be sure, even if prices don’t recover, some companies will continue to be profitable. Barrick’s all-in production cost, which includes everything from exploration to waste-rock removal expenses, was $972 an ounce in the first quarter. Newmont’s all-in cost was $1,192.

Top Pick

In Australia, low-cost producers including Beadell Resources Ltd., Regis Resources Ltd. and Newcrest Mining Ltd., the country’s largest producer, are likely to withstand the rout better than their local peers, said Vincent Pisani, an analyst at Shaw Stockbroking Ltd. in Melbourne.

Goldcorp Inc., the biggest producer by market value, is the “top pick” among North American producers because it has a strong balance sheet and low-cost assets, Macquarie said. Yamana Gold Inc., New Gold Inc. and Agnico-Eagle Mines Ltd. could also withstand lower prices without changing their plans or depleting lines of credit, analysts at RBC Capital Markets said April 15.

Furthermore, gold may still rebound from current levels. Bullion for immediate delivery will average $1,717 this year, according to the mean of 29 analyst’s estimates compiled by Bloomberg.

“We’ve historically seen breaks like this in precious metals and we’ve always seen it bounce back,” Maison’s Ing said. “There is no certainty the price that we see today is going to be the price that we are going to see next year or the year after.”

Growth and Demand Outlooks Weigh On Crude Oil

             Crude oil continues its decline this morning trading at 86.75 down by 23 cents as growth and recovery downgrades weigh heavily on the commodity. U.S. crude futures for May delivery closed down by $2.04 at $86.68 a barrel, down by 2.3% on Wednesday. Crude prices were down on concerns over weak global oil demand after the IMF cut its global growth forecast to 3.3%. The International Energy Agency said that falling crude prices was evidence that the oil market is well supplied, putting additional pressure on prices. However, crude inventories unexpectedly fell by 1.2M which prevented further downside in prices.

Oil prices have fallen almost 7 percent in the last five days on expectations of sluggish demand from the U.S. and China, the world’s two biggest economies. The price of Brent crude oil has tumbled 18 percent from a peak of $118 a barrel in February to below $98 this week. Weaker-than-expected economic data from the U.S. and China over the past week have heightened concerns that the global economic outlook is not as strong as many expected just a couple of months ago. But the fall in oil prices provides a silver lining, say analysts. Yesterday the US Fed Reserve released its “Beige Book” which reviews the state of the US economy and is a guide for the FOMC. The assessment released Wednesday said overall activity is growing at a moderate pace, which is better than the report six weeks ago in which the economy was growing at a “modest to moderate” pace. According to the report, most of the nation saw increases in manufacturing, though the labor market was either unchanged or improved slightly. There were reports of hiring in manufacturing, residential construction, information technology and professional services.

Oil’s fall comes as part of a wider commodities rout triggered by data released Monday showing growth in China, the world’s second-largest oil consumer, had slowed unexpectedly in the first three months of 2013.Brent crude futures for June delivery hit a low of $96.75 before paring losses to trade at $97.32 early on Wednesday, down 37 cents. Brent stretched its losses into a seventh session – its longest losing streak since October last year.

Oil prices were also under pressure given risk of political uncertainty in the euro zone, where Italy’s divided parliament begins voting for a new state president on Thursday, a crucial step towards resolving the stalemate since the inconclusive election in February and to carry on with fiscal reforms.Investors seemed to shrug off news of Shell declaring force majeure on Nigerian Bonny Light crude oil exports. The company said it was shutting down the 150,000-barrel-per-day Nembe Creek pipeline in Nigeria for repairs.The stronger US dollar is also weighing on prices as equity markets fell around the globe yesterday, traders moved to the safety of the US dollar.

Natural gas prices also eased to trade at 4.189 giving up 19 pips this morning as the dollar strengthened as traders sold off to book profits, with natural gas breaking above the 4.20 mark activating sell orders. U.S. natural gas ended higher as chilly weather forecast boosted the heating demand and supported prices. Inventories today are expected to be positive which could push prices down. However prices are likely to move in a range before the data. - FxEmpire

Gold and Silver Continue to Snowball

                   Gold remains weak on Wednesday morning dropping over $7.00 to trade at 1379.95 while silver tumbles farther to trade at 23.425 down by 20 cents. Precious metals remain weak, unable to regain footing.  On Tuesday gold futures managed to score their first gain in 3-sessions, but wounds from the fierce selloff that dragged prices down by more than $200 per ounce in two days will take time to heal.

Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, declined to 1,145.92 tons, as on April 16 as the fund continues to selloff holdings deepening the wound. Silver weakening as precious metals decline and industrial metals tumble has seen silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 10,451.01 tons, as on April 15. The meteoric rise of exchange-traded gold products over the past decade has now exposed thousands of small investors to losses after years of gains in an asset previously the preserve of eccentrics, collectors and central banks.

Industrial metals prices rose yesterday helped by a weaker dollar and as upbeat housing data from the U.S. propped up hopes of more solid metals demand growth, prompting some buying after a sharp fall in the previous session, but is giving back those gains in this morning session as the US dollar gains some traction.

The US dollar and the Japanese yen dropped on Tuesday, as investors sold the safe-haven currencies and bought gold and US stocks a day after heavy selling in the yellow metal.

The dollar index fell to 81.781 in Tuesday afternoon trade from 82.318 on late Monday.

IMF in its World Economic Outlook said that the euro zone remains the weakest part of the global economy and warned that a long period of low growth in the currency area would weaken the potential for expansion in the neighboring economies of central and Eastern Europe, as well as further afield. Five years after the financial crisis started, the International Monetary Fund (IMF) has issued a warning about the increasing fragmentation of the global economy, the very visible split between the dynamism of emerging countries, the US’ resistance and the persistent weakening of the eurozone.

In figures, the grim picture painted by the IMF in its 16 April report, look like this: global GDP estimations have been lowered and it is now predicted to be 3.3% this year, compared with the 3.5% predicted in January. To no one’s surprise, the eurozone is still a major cause of concern for the Washington-based institution – which holds its general assembly this week. In the short term, risks mainly stem from the evolution of the eurozone, in particular “inconclusive elections in heavily indebted Italy and the problematic Cyprus bailout,” the IMF wrote.

Precious metals and industrial metals are expected to remain weak as traders are worried about the upcoming FOMC meeting in the US as speculators are thinking that the central bank might slow its asset purchase program. - fx Empire

SBV to extend Gold auctions to narrow price gap

        Vietnam central bank's latest gold bullion auction witnessed some improvement as 40,000 taels of 37.5 grams each gold bars were sold, the highest volume yet.

The fifth auction held on Wednesday attracted more buyers as bidders, mostly jewelers and banks, paid VND43.3-43.31 million ($2,068) per tael.

The previous highest volume sold was around 26,000 taels in the last two auctions. SJC, Vietnam's largest gold trader, offered a tael at VND43.35 million.

The central bank has so far sold nearly 120,000 taels from the country's reserves in the auctions it started holding in late March The auctions began after jewelers were prohibited from producing gold bullion in last May.

Oil falls after IMF pares U.S. GDP estimate

                  Crude Oil futures are trading to the downside in the early part of Friday’s Asian session after being weighed by down yet another concerning data point. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery are off 0.11% at USD93.41 per barrel in Asian trading Friday, perhaps indicating that traders are not overly impressed with the U.S. weekly jobless claims report. 

In U.S. economic news out Thursday, initial claims for jobless benefits fell to 346,000 last week from 388,000 in the previous week. Economists expected a reading of 360,000 new claims. The less volatile four-week moving average rose to 358,000 from 355,000. The U.S. is the world’s largest oil consumer. 

What may be weighing on oil is the International Monetary Fund’s World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%. 

Endeavour Silver posts record Q1 production

                    Endeavour Silver Corp (TSE:EDR) (NYSE:EXK) has said that it had significantly lifted bullion production and revenues for the first quarter ended March 31, but warned that some lost production days are anticipated in the second quarter during the re-commissioning of the El Cubo plant in Guanajuato State. 

The precious metals miner said it planned on strong first quarter production to compensate for a possible dip in second quarter output related to the plant and surface infrastructure rebuilding programs at El Cubo.

The company has three operating silver mines in Mexico: the Guanacevi mine in Durango State and the Bolanitos and El Cubo Mines in Guanajuato State.

Silver production in the first quarter was up 39% to 1.48 million ounces from 1.07 million ounces a year earlier and gold production more than doubled year-over-year to 15,032 ounces, from 6,3201 ounces.

Revenues increased 42% to US$69.9 million, from $49 million in the year-ago period, thanks to the increased metal production and some sales of accumulated concentrate, partly offset by lower metal prices, the company said.

In the first quarter, silver and equivalents production escalated 63% to 2.32 million ounces year-over-year.

"Endeavour's mining operations enjoyed a good start to 2013 with record quarterly silver and gold production in the first quarter,” said president and COO Godfrey Walton.

“Guanacevi rebounded from a slow start with better than planned silver grades and recoveries thanks to the commencement of production at the Porvenir Cuatro mine.

"Bolanitos continued to exceed expectations with higher than planned mine output, the extra ore being processed at the leased Las Torres plant near El Cubo and the extra concentrates being sold thanks to two new concentrate sales contracts.”

Indeed, the miner signed two new concentrate sales contracts for Bolanitos in the quarter, in order to facilitate higher production. Revenue is subject to adjustment upon final settlement in the second quarter, it said, including metal prices.

Endeavour said that the realized silver price fell 11% to $29.38 per ounce sold, two-per-cent below the average price for the quarter, while the average realized gold price fell four per cent to $1,686 per ounce sold, one per cent lower than the average price in the quarter.

As at the quarter’s end, the company said bullion inventory included 234,970 ounces of silver and 2,091 ounces of gold. Concentrate inventory included 321,487 ounces of silver and 5,589 ounces of gold.

Endeavour Silver is a mid-tier silver mining company focused on the growth of its silver production, reserves and resources in Mexico. - Bullion street

Gold down on Fed, Goldman Sachs comments

          Gold futures are trading lower in the early part of Thursday’s Asian session following potentially concerning commentary from some members of the Federal Reserve and a bearish outlook on bullion from Goldman Sachs. 

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 0.22% to USD1,555.35 per troy ounce in Asian trading Thursday after settling down 1.80% at USD1,558.15 a troy ounce in U.S. trading on Wednesday. 

Gold futures were likely to test support USD1,539.85 a troy ounce, Thursday's low, and resistance at USD1,590.05, Tuesday's high. 

In U.S. economic news, several members of the Federal Reserve said the central bank should begin winding down its monetary easing program later this and perhaps end the program outright by year-end, according to the latest Federal Open Market Committee meeting minutes. 

Your Gold & Silver Outlook: 2013

Your Gold & Silver Outlook: 2013

Silver prices have delivered the best gains since 2002, according to Lloyds TSB. But, of course, the key question for precious metals investors is whether gold and silver will continue to be a good performer for 2013.

What’s Happened So Far

The prices of gold and silver decreased slightly last week. This caused some notice from the media and investors. Even with the extremely concerning news coming out of Cyprus's, gold and silver didn't pull up from their downward price movement.

Gold has been trading at new lows for the year and Silver making multi-year lows. Some commentators are suggesting that the Gold/Silver bull market is over with.

The Real Deal

Although off to a rough start, we still believe Gold And Silver are paced to go higher.

Gold and silver investments may have shot up five years ago, but they have been extremely popular this year. 

In January, the United States Mint sold 7.5 Million American Silver Eagle Coins. Yet in all of 2007, the US Mint sold only sold 9.9 million American Silver Eagles. So in the first month of 2013, the US Mint sold 75% of what it did in 2007.

In fact, demand was so strong that the Mint temporarily ran out of stock and had to suspend sales for roughly 10 days. In addition, the premiums of American Gold Eagle Coins hit highs not seen since June 2010.

The US Mint is expecting to sell a record number of silver American Eagles in 2013. 

We know that to some investors, problems that surfaced during the recent recession, such as the collapse of the mortgage-backed securities market, prompted them to seek safety in tangible, versus "paper," assets. This is one of many factors boosting interest in owning physical gold and silver bullion.

Another trend that is surfacing is state legislation similar to the one passed in 2011 in Utah. This allowed Gold And Silver Bullion Coins issued by the US Mint to be used as legal tender. 

People place their gold and silver bullion coins in the Utah Gold & Silver Depository and receive a card that acts similar to a debit card which they can use to make purchases of up to 80 percent of the coins' current value. A dozen other states have been considering similar legislation.

The Outlook

Some commentators seem temped to call this gold and silver bull market dead and gone. We think differently.

The fundamentals of gold and silver have not changed. There are still Massive Amounts Of New Currency In Circulation. The United States Mint is selling record amounts of gold and silver. And most importantly, the role of gold and silver as monetary metal, not just another commodity, is beginning to resurface in states like Utah.

We haven’t seen nothin’ yet.  - Goldsilver.com