Gold prices spiked in U.S. trading on Monday on hopes U.S. lawmakers
will vote on a late-hour deal to avoid the U.S. fiscal cliff, which
pushed up demand for risk-on asset classes including gold.
On the
Comex division of the New York Mercantile Exchange, gold futures for
March delivery were up 1.32% at USD1,677.75 a troy ounce in U.S.
trading, up from a session low of USD1,655.95 and down from a high of
USD1,680.95 a troy ounce.
Gold futures were likely to test
support USD1,654.15 a troy ounce, Friday's low, and resistance at
USD1,724.75, the high of Dec. 12.
Talk that lawmakers are close
to striking a deal that will steer the economy away from the fiscal
cliff, a potentially recessionary combination of tax hikes and spending
cuts due to take effect at the close of 2012, sent gold prices soaring.
The
nonpartisan Congressional Budget Office has warned that failure to
address the fiscal cliff could tip the U.S. economy into a recession
next year.
Sticking points between the White House and
congressional Republicans include tax rates on top U.S. earners and the
scope of public spending cuts, though hopes President Barack Obama will
announce progress to avoid the fiscal cliff later Monday sparked a rally
in the gold market, a barometer for appetite for risk.
Meanwhile
on the Comex, silver for March delivery was up 0.98% and trading at
USD30.270 a troy ounce, while copper for March delivery was up 1.70% and
trading at USD3.651 a pound. -
Investing.com
Natural gas futures tanked on Monday after
meteorologists tweaked their forecasts for the next two weeks to the
warmer side.
On the New York Mercantile Exchange, natural gas
futures for delivery in February traded at USD3.374 per million British
thermal units, down 2.72%.
Recent forecasts calling for cold weather to return in January moderated somewhat Monday.
Weather
service provider MDA Weather said that it expected temperatures to warm
up in the coming days through the second week of January.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The heating season from November through March sees peak demand for U.S. gas.
About half of U.S. households use gas for heating purposes, according to Energy Department data.
Meanwhile,
U.S. natural gas storage fell less than expected in the week before
last, official data revealed on Friday, though weather forecasts served
as the market's chief weather vane.
In a report, the Energy
Information Administration said that U.S. natural gas storage fell by 72
billion cubic feet last week to 3.652 trillion cubic feet, less than a
decline of 82 billion cubic feet in the preceding week.
Analysts
had expected U.S. natural gas storage to fall 76 billion cubic feet
last week, though markets focused more on weather forecasts
Elsewhere
on the NYMEX, light sweet crude oil futures for delivery in February
were up 0.83% and trading at USD91.55 a barrel, while heating oil for
February delivery were up 0.41% and trading at USD3.0337 per gallon. -
Investing.com
Crude oil futures rose on Monday on hopes U.S. policymakers will strike a
last-minute deal to avoid the fiscal cliff, a potentially recessionary
combo of tax hikes and spending cuts due to take effect with the close
of 2012.
On the New York Mercantile Exchange, light, sweet crude
futures for delivery in February traded at USD91.27 a barrel on Monday,
up 0.52%, off from a session high of USD91.34 and up from an earlier
session low of USD90.00.
Failure to agree on fiscal framework in
the U.S. now will allow tax breaks to expire at the end of 2012
alongside deep spending cuts, a combination known as a fiscal cliff that
could push the U.S. economy into a recession next year, which would
seriously crimp demand for fuels and energy.
While lawmakers were
scrambling to reach a deal on the last day of 2012, oil futures rose on
hopes negotiations will lead to some sort of agreement that resolves
uncertainty even if a solution involves stop-gap measures that give the
nation's leaders more time to address longer-term fiscal reforms.
Meanwhile
on the ICE Futures Exchange, Brent oil futures for February delivery
were up 0.07% at USD110.69 a barrel, up USD19.42 from its U.S.
counterpart. - Investing.com
