Copper futures plunge to 4-month low on Cyprus rescue deal

              Copper futures came under heavy selling pressure during European morning hours on Monday, falling to the lowest level since November as worries over a controversial bailout deal for Cyprus weighed on appetite for riskier assets.

Copper prices also struggled for upside traction due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.6% to trade at 82.89.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.443 a pound during European morning trade, down 2.2% on the day.

Crude oil futures fall sharply on Cyprus bailout woes, firm dollar

Crude oil futures came under heavy selling pressure during European morning hours on Monday, as appetite for growth-linked assets weakened after news of a bailout deal for Cyprus sparked fresh concerns over the sovereign debt crisis in the euro zone.

Oil prices struggled further due to a stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.6% to trade at 82.89.

Gold the lone beneficiary from Cyprus episode

                              Gold remained the only major commodity that gained from the mini crisis involving island nation Cyprus.

Gold rose as much as 1.1 percent to $1,608.60 an ounce, the highest since Feb. 27.

Analysts said the controversial bailout plan for Cyprus threatens renewed uncertainty in the euro zone, led to buying of the safe-haven metal.

Global stocks fell sharply as investors fretted over a weekend plan to tax depositors in Cypriot banks as part of a bailout of the Mediterranean island nation.

The euro was taking a pounding too, down 0.7 percent at $1.2954. Though Cyprus accounts for only around 0.2 percent of the combined output of the 17 European Union countries that use the euro, the tax on depositors has stoked fears of bank runs in other troubled European economies.

Since the European debt crisis began in late 2009, savers have been spared. The bailout of Cyprus, agreed to early Saturday, foresees a 6.75 percent levy on deposits below (EURO)100,000 ($130,860) rising to 9.9 percent on those above.

Gold futures climb to 3-week high on Cyprus bailout uncertainty

                      Gold futures climbed to a three-week high during European morning hours on Monday, as the precious metal regained its role as a safe-haven asset amid concerns a controversial bailout plan for Cyprus will lead to a flare up in the euro zone’s sovereign debt crisis.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,602.50 a troy ounce during European morning trade, up 0.6% on the day.

Prices rose by as much as 0.9% earlier in the session to hit a daily high of USD1,607.50 a troy ounce, the strongest level since February 27.

Gold prices were likely to find support at USD1,560.60 a troy ounce, the low from March 8 and near-term resistance at USD1,614.40, the high from February 27.

On Saturday, the European Union and International Monetary Fund reached an agreement on a EUR10 billion bailout for Cyprus. In exchange for the rescue money, international creditors would impose a one-time tax of 6.75% on all bank deposits under EUR100,000 and 9.9% over that amount.

Oil falls on news of increased Saudi, Iraqi exports

                         Oil futures are tumbling to start the week in Asia on news that Saudi Arabia and Iraq increased production in January.

On the New York Mercantile Exchange, light, sweet crude futures for April delivery are off 1.11% at USD92.42 per ounce in Asian trading Monday. Helped by some strong U.S. data points, New York-traded oil futures tacked on 1.85% last week, the second consecutive weekly gain.

In the U.S., data on Friday showed that industrial production rose by 0.7% in February, beating expectations for a 0.4% increase. Data published last Thursday showed initial claims for jobless benefits fell last week by 10,000 to 332,000 claims. Analysts expected an increase to 350,000 claims. The less volatile four-week moving average fell by 2,750 to 346,750.

Traders appear to be looking past those data points today to focus on production news. According to the Joint Organisations Data Initiative, Saudi Arabia and Iraq, both members of the Organization of Petroleum Exporting countries, increased exports for the first time in three months in January.

Saudi Arabia, the largest OPEC producer, shipped nearly 7.1 million barrels per day last month, an increase of 300,000 barrels per day from December. Iraq, OPEC’s second-largest producer behind Saudi Arabia, boosted its January exports by 10,000 barrels to 2.36 million barrels per day.

The Joint Organisations Data Initiative data indicate Indian demand surged 16% to 4.2 million barrels per day in January. India is Asia’s second-largest oil-consuming nation behind China.

In the week ahead investors will be focusing on Wednesday’s Federal Reserve policy statement, amid speculation over an earlier-than-expected end to the bank’s asset purchase program.

Elsewhere, Brent futures for May delivery slipped 1% to USD108.99 per barrel on the ICE Futures Exchange.

Natural Gas Continues To Climb

                  Natural gas continues to climb this morning trading at 3.921 adding over 6 cents as cold weather is forecast throughout the US. As the winter comes to a close, one last winter blast is expected as the North East corridor is beginning to see snowfall. A major snow storm is expected in Minnesota and in the Baltimore Washington corridor. A Winter Storm Warning is in effect from 2 am to 6 PM EDT Monday. The National Weather Service in Baltimore MD/Washington has issued a Winter Storm Warning for snow and sleet-which is in effect from 2 am to 6 PM EDT Monday. This late season cold spell is expected to see residential energy demand skyrocket and reduce inventory levels while supporting price increases Natural gas extended its winning streak for the third straight session on Friday, advancing to their highest level in 4-months on forecasts that cold temperatures will persist across most of the US in the coming weeks.

The number of natural gas drilling rigs in the US rose by 24 in the latest week to 431 while oil-rig counts were unchanged at 1,341, according to oil field services company Baker Hughes Inc. Since energy is all about supply and demand, you can see we have a world of demand at our fingertips. From a supply side, prices in the U.S. are as low as they are because we have too much production. Even with the growth of natural gas in electricity generation, we’re simply not consuming enough natural gas domestically to make a dent in the potential production windfall. Production would be even higher in 2012, but prices have been so low that driller all but stopped drilling for natural gas, choosing to drill for oil instead.

Gold Climbs Above $1,600 as Cyprus Turmoil Spurs Haven Demand

              Gold climbed above $1,600 an ounce as outrage in Cyprus over an unprecedented levy on bank deposits threatened to derail the nation’s bailout and spark a new round in Europe’s debt crisis, boosting demand for haven assets.

Gold for immediate delivery gained as much as 1.1 percent to $1,608.60 an ounce, the highest since Feb. 27, and traded at $1,604.38 at 7:03 a.m. in Singapore. Bullion for April delivery rose as much as 0.9 percent to $1,607.60 on the Comex.

Cypriot President Nicos Anastasiades bowed to demands by euro-area finance ministers to raise 5.8 billion euros ($7.5 billion) by taking a piece of every bank account in Cyprus. Scenes of Cypriots lining up at cash machines raised the specter of capital flight elsewhere and threatened to disrupt a market calm that settled over the 17-member bloc since the European Central Bank’s pledge in September to backstop troubled nations’ debt.

“Cyprus has put a little bit of a spin back towards safe- haven assets, purely as a result of a little bit of nervousness coming back into Europe,” said Jonathan Barratt, the chief executive officer of Barratt’s Bulletin, a commodity newsletter in Sydney.

Silver for immediate delivery climbed as much as 1.3 percent to $29.135 an ounce and was at $29.006. Platinum rose 0.3 percent to $1,594.25 an ounce, while palladium declined 0.2 percent to $774.75 an ounce. (Source : Bloomberg)

Suriname to start Gold refining next year

                 South American nation Suriname will built it's first ever gold refinery with the help of Dubai's Kaloti Group.

Kaloti, one of the world's largest gold and precious metals refiners and trading houses, has started building the precious metals refinery and bullion manufacturing plant in a project with operational funding of as much as $20 million.

The company says it will be a joint venture with local gold traders and the government of Suriname.

Construction of the precious metals refinery and bullion manufacturing plant, which will be the first in the country, already has started and refining is expected to begin by the middle of 2014.

Production is forecast to reach 60 tonnes of refined gold by the time the smelter is fully operational in 2016.