Zinc Rises on Speculation China to Further Loosen Rate Controls

                    Zinc rose in London, leading an advance in industrial metals, on speculation China’s new leaders will further loosen interest-rate controls this year. 

Twelve of 16 analysts expect China to relax or remove the cap on deposit rates or the floor on lending rates, according to a Bloomberg News survey conducted ahead of Xi Jinping’s appointment as president tomorrow. Metals also increased as the dollar weakened, making greenback-denominated commodities more attractive as an alternative investment. Some traders were also buying metals to close out bets on falling prices. 

“Metals have been looking closely at the dollar,” Mark Newson-Smith, head of sales at Xconnect Trading Ltd. in London, said by e-mail. He pointed to short-covering from “short-term” commodity trading advisers. “Confidence is returning as the dollar reverses slightly,” he said.Zinc for delivery in three months rose 0.7 percent to $2,000 a metric ton by 9:42 a.m. on the London Metal Exchange. Copper was little changed at $7,832 a ton, while the May- delivery contract fell 0.1 percent to $3.5495 a pound on the Comex in New York. Trading in the New York contract was 5.9 percent above the average in the past 100 days for the time of day. 

The fewest workers on record were fired in the U.S. in January and job openings rebounded, data showed yesterday. Sales at U.S. retailers probably rose 0.5 percent in February, according to a Bloomberg News survey. 

Increases in metals may be limited as a report may show industrial production in the euro-area shrunk in January. 

Copper stockpiles monitored by the LME rose for a 20th session to 520,500 tons, daily exchange figures showed. Inventories in New Orleans almost doubled this year while those in Johor, Malaysia, more than quadrupled.Aluminum, tin, nickel and lead rose in London.- BLOOMBERG

Copper Advances on China Autos, U.S. Jobs: Commodities at Close

The Standard & Poor’s GSCI Spot Index of 24 raw materials rose 0.1 percent to settle at 649.62 at 3:59 p.m. New York time, led by industrial metals.

The UBS Bloomberg CMCI gauge of 26 prices advanced 0.3 percent to 1,551.55.

BASE METALS

Copper rose to the highest in more than a week as signs of strength in Chinese auto sales and gains in the U.S. labor market brightened demand prospects for industrial metals.

Wholesale deliveries of cars, multipurpose and sport- utility vehicles rose 20 percent in the two months ended Feb. 28 in the strongest start since 2010, according to a Chinese industry group. U.S. job openings climbed in January, and confidence among small businesses rose in February for a third month, reports showed.

On the Comex in New York, copper futures for May delivery advanced 1.1 percent to $3.5545 a pound. Earlier, the price reached $3.576, the highest for a most-active contract since Feb. 28.

On the London Metal Exchange, copper for delivery in three months gained 0.9 percent to $7,830 a metric ton ($3.55 a pound). Zinc, nickel, tin, aluminum and lead also rose.

PRECIOUS METALS

Gold rose, capping the longest rally in six months, as Europe’s slumping economy increased speculation that central banks will expand stimulus measures, boosting demand for the metal as a store of value.

On the Comex, gold futures for April delivery climbed 0.9 percent to $1,591.70 an ounce. The price climbed for the fourth straight session, the longest rally since Aug 21.

Silver futures for May delivery rose 1.1 percent to $29.171 an ounce.

On the New York Mercantile Exchange, platinum futures for April delivery fell 0.4 percent to $1,595 an ounce.

Palladium futures for June delivery dropped 0.5 percent to $775.50 an ounce.

CRUDE OIL

Crude oil advanced as the euro trimmed losses against the dollar and the Organization of Petroleum Exporting Countries increased production.

On the Nymex, oil futures for April delivery rose 0.5 percent to $92.54 a barrel.

Brent oil for April settlement dropped 0.5 percent to $109.65 a barrel on the London-based ICE Futures Europe exchange.

OAO Lukoil’s Litasco bought a cargo of Forties crude at the lowest differential in almost 11 months. Statoil ASA bid for Russian Urals blend at the highest spread in almost a month.

Daily exports of the 12 main grades of North Sea crude for loading in April will increase 8 percent to the highest in 10 months, programs obtained by Bloomberg News showed.

OIL PRODUCTS

Gasoline was little changed following wide price swings linked to volatile biofuel-credit prices.

On the Nymex, gasoline futures for April delivery slid 0.1 percent to $3.1502 a gallon. The price rose as much as 1.2 percent and dropped as much as 1.6 percent.

Heating-oil futures for April delivery fell 0.7 percent to $2.9484 a gallon.

Gold Gains But Lacks Conviction

Gold is trading completely flat on Wednesday morning at 1591.70 as the gains yesterday had no conviction; markets remain without a direction while they begin to speculate about next week’s FOMC meeting decision. Gold rose nearly 1%, after a top European Central Bank official said the euro zone crisis was not over; however prices again came under pressure as redemptions in gold-backed exchange-traded funds continued. Gold holdings of SPDR gold trust declined to 1,236.31 tons

Bundesbank’s chief Jens Weidmann, also a member of the ECB Governing Council, said the German central bank had set aside billions more Euros against what it deemed risky ECB moves. Weidmann is very outspoken and very conservative with a negative outlook so much of thoughts and statements are colored by his overall bias.

The dollar index closed a seesaw session with a marginal loss which allowed precious metals an opportunity to buy gold on dips in the US dollar. The dollar index which tracks greenback against major currencies moved to 82.585.

Gold prices were also supported on expectations of aggressive monetary easing by Japan after the new BOJ governor steps in on March 19. Mr. Kuroda received the support of the parties controlling the legislature this morning assuring his swift and positive approval on Thursday.

April Gold Futures Spike Higher

Bargain hunters helped drive April gold prices higher on Tuesday. The weaker U.S. Dollar also helped underpin the market. Technically, several days of narrow trading and consolidation gave one the feeling that something was up, but the direction wasn’t clear. On one hand we had the downtrend on the daily chart, but we also had a new higher bottom at $1560.40 from March 8 which was indicative of new buying.

Technically, April gold is trading on the bullish side of a retracement zone at $1587.00 to $1579.28. Uptrending support is at $1580.30. Downtrending resistance is at $1599.70. This has created a triangle chart pattern on the daily chart which is indicative of more short-term volatility.

 Short-covering and a weaker U.S. Dollar continued to drive April crude oil prices higher amid bearish supply and demand fundamentals. Technically, crude oil has been moving up at a rate of .50 since reaching a bottom at $89.33 on March 4. The angle it has been straddling during the rise is at $92.33 today. Based on the short-term range of $98.65 to $89.33, the major upside target is $93.99 to $95.09. A downtrending Gann angle at $94.15 could provide additional resistance.

Gold drops after hitting $1,600 overnight

Gold edged down in Asian trade Wednesday after crossing the $1600 mark for a brief period overnight.

Gold for immediate delivery was seen trading at $1593.01 an ounce at 12.00 noon S9ingapore time while US gold was at $1592.22 an ounce on the comex division of nymex.

Analysts said the precious yellow metal is likely to extend gains on remarks by Germany's central bank about the euro zone crisis and the European Central Bank's moves to stem it.

Germany's Bundesbank said the euro zone crisis, which has eased as a result of the ECB's funding promises, was not over,and that it had set aside billions more euros against what it deems risky ECB moves.