Copper futures fall to 8-month low ahead of ECB, U.S. jobs data

    Copper futures fell to the lowest level since early August during European morning hours on Thursday, as a broadly stronger U.S. dollar dampened the appeal of the industrial metal.

Investors now looked ahead to the European Central Bank’s policy decision due later in the day, as well as Friday’s U.S. jobs data for trading cues.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.323 a pound during European morning trade, down 0.3% on the day.

New York-traded copper prices fell by as much as 0.8% earlier in the session to hit a daily low of USD3.306 a pound, the weakest level since August 3.

Copper prices 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 0.7% to trade at 83.47, the strongest level since August.

Market players now looked ahead to Friday’s highly-anticipated U.S. monthly nonfarm payrolls report to further asses the strength of the country’s economy.

The U.S. is second behind China in global copper demand.

Investors also awaited the European Central Bank’s policy decision due later in the day, as well as comments by ECB President Mario Draghi for further hints on the future of its monetary policy.

Elsewhere on the Comex, gold for June delivery dipped 0.5% to trade at USD1,545.75 a troy ounce, while silver for May delivery was flat to trade at USD26.79 a troy ounce.

Gold and silver remained under pressure as investors were hesitant to enter the precious metals market amid a weak technical outlook.

Gold prices were trading at an 11-month low, while silver futures fell to the lowest since July.

Crude Oil and Natural Gas Trading In The Green

                                             WTI crude oil closed up 24 cents at $96.58 a barrel, up by 0.25% yesterday. Crude oil futures staged a modest rebound from earlier losses, clawing back above $96 per barrel to extend gains for the fourth session in a row, as recent signs of economic recovery bode well for demand prospects. Crude remains flat after the Asian session today. Crude prices were supported on optimism that US economy is recovering which would improve the demand prospects for crude. However the upside was limited due to a stronger dollar which is trading new a record high of 83.40 this morning and higher inventories which came at 3.3M. The U.S. Energy Information Administration reported a climb in crude supplies that was about double market expectations. Crude supplies rose 3.3 million barrels for the week ended March 22. Analysts expected a 1.6 million-barrel climb. Motor gasoline supplies fell by 1.6 million barrels, matching analysts’ expectations, while distillate stockpiles declined by 4.5 million barrels, compared with forecasts for a decline of 700,000 barrels in distillate supplies.

Traders can expect crude prices to go slightly up as loose monetary policies by US and Japan is likely to support prices. Assurances from the new head of the Bank of Japan that he would push through more stimulus and new programs at next week’s meeting helped support oil prices.

Japan’s oil imports from Iran rose 15.9 percent in February from a year ago to the highest in eleven months, customs cleared data showed on Thursday, a rare increase from one of the major buyers of crude from sanctions-hit Iran.

Oil rises in Asia following U.S. inventory data

         Crude Oil futures are trading modestly higher during Thursday’s Asian session, rebounding from a small loss in Wednesday U.S. session at the hands of the weekly inventory data. 

On the New York Mercantile Exchange, light, sweet crude futures for May delivery are up 0.10% at USD96.67 per barrel in Asian trading Thursday after settling down 0.31% at USD96.04 a barrel on Wednesday in the U.S. 

The U.S. Energy Information Administration reported earlier that U.S. crude oil inventories rose by 3.256 million barrels last week after falling by 1.314 million barrels in the week before last. Analysts were expecting oil inventories to rise by only 705,000 last week.

Gasoline inventories, meanwhile, fell by 1.596 million barrels compared to a drop of 1.476 million barrels in the preceding week. Analysts were calling for gasoline inventories to fall by 1.020 million last week. 

In U.S. economic news, the National Association of Realtors said pending home sales fell 0.4% in February from January, but added the number increased 8.4% on a year-over-year basis. Despite trading lower today in Asia, gold is on track for gain of better than 1.5% this month. 

Also on Wednesday, Citigroup published a report saying it expects oil demand will peak before the current decade is over. The bank also slashed its price forecast on Brent crude to USD80 to USD90. 

Elsewhere, the Nigerian National Oil Spill Detection and Response Agency and the Nigerian Maritime Administration and Safety Agency are seeking a combined USD11.5 billion in fines from Royal Dutch Shell, Europe’s largest oil company, related to an oil spill at its offshore Bonga field in December 2011. Shell says there is no basis for the claims. 

Brazil’s Petrobras, that country’s state-run oil giant, said it will sell two offshore fields in Nigeria as part of its plan to sell USD9.9 billion worth of assets this year. 

Meanwhile Brent crude futures for May delivery rose 0.09% to USD109.84 per barrel on the ICE Futures Exchange. - Investing.com

Natural Gas gains as weather forecasts point to a chilly start to April

                   Natural gas futures jumped up in afternoon trading on Wednesday, just shy of 18-month highs hit earlier after weather models indicated the temperatures in the first week of April will remain below normal.

On the New York Mercantile Exchange, natural gas futures for delivery in May traded at USD4.087 per million British thermal units, up 2.39%.

The commodity hit a session low of USD3.983 and a high of USD4.101.

Weather forecasting models that called for a chilly end to March extended their frigid forecasts to early April.

MDA Weather Services, for example, predicted below-normal temperatures to stick around over a large portion of the eastern half of the United States through April 10, which pushed up natural gas prices to near 18-month highs.

Markets were eagerly waiting official supply data due for release on Thursday, and hopes were high for more bullish supply data than in last week's report.

Crude oil futures higher, focus on Cyprus

                 Crude oil futures were higher on Tuesday, as optimism following news of bailout deal for Cyprus continued to support sentiment, although comments by Eurogroup head Jeroen Dijsselbloem limited gains. 

On the New York Mercantile Exchange, light sweet crude futures for delivery in May traded at USD94.98 a barrel during European morning trade, up 0.18%. 

Dijsselbloem said on Monday that the rescue program agreed for Cyprus represents a new model for resolving euro zone banking problems and other countries may have to restructure their banking sectors. 

Gold and Silver Show Little Reaction To Fed Decision

                                       Precious metals witnessed profit taking ahead of the US Federal Reserve Policy meet yesterday after gold traded as high at 1611.00. Gold prices registered marginal decline, however they held above the key level of US$1,600/ounce. US Federal Reserve stuck to its stance on bond buying and interest rates as well as its unemployment target. The FOMC stated that it would keep interest rates unchanged as long as the jobless rate was above 6.5%. It further elaborated that it does not expect the unemployment rate to fall below the specified levels until 2015 indicated that stimlus could remain ongoing for that period of time. The Fed did not mention any sort of roll back or exit strategy. On growth front, Bernanke stated that he expects moderate recovery, although downside risks to the economic outlook persists. The Fed reduced its growth expectations. During his press conference Mr. Bernanke noted the Cyprus situation but said that he does not see any effects on the US economy or recovery.

The uncertainty regarding Cyprus situation continue to linger, which is effectively providing some support to the gold prices. Cyprus has extended a bank shutdown to next week and considered nationalizing pension funds. Meanwhile, Cypriot leadership is seeking aid from Russia after rejecting European proposals. Cyprus’s finance minister met Russian counterparts and the meeting is reported to have made some progress. Gold prices were down as fears eased that the crisis in Cyprus may not spread further in the euro zone. EU Ministers are now downplaying the one time bank tax saying that Cyprus was a unique case, but commentators and analysts say that the EU leadership has permanently changed trust in banks. Savers may slowly look for more secure places to store their saving out of the control of governmental taxes and levies, especially in countries that might need bailout.

Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, increased to 1,222.16 tons, as on March 20. Silver holdings of ishares silver trust, the largest ETF backed by the metal, declined to 10,583.36 tons, as on March 20. The dollar index traded at 82.827 in recent action, little moved from 82.893 in late trading on Tuesday. TheUS dollar rallied against the yen on Wednesday, after a decision by the Federal Reserve to continue its aggressive monetary easing fueled optimism about the US economic recovery. The euro rebounded from a 4-month low against the dollar as fears about a financial meltdown in Cyprus eased, with the small island country pleading for a new loan from Russia.

Base metals managed moderate recovery, aided by US Federal Reserve persistence with bond buying program. The complex is expected to trade firm today, deriving cues from positive manufacturing numbers from China. The HSBC has reported that China Flash PMI for March has advanced to 51.7, as compared with a final reading of 50.4 in February. Silver advanced 36 points to trade at 28.853 while copper is trading in the green at 3.459. -FxEmpire

Crude Oil Steady As Demand Increases

                                   This morning crude oil is trading at 93.28 giving back 23 cents. WTI Crude oil traded directionless in the midst of countervailing forces. Looming financial meltdown in Cyprus enacted as a headwind, however US Federal Reserve policy statement provided some support to the prices.

Crude prices were supported by Fed’s decision for continued monetary easing which would improve the demand for crude from US. Lower than expected inventories and a weaker dollar internationally also supported crude prices. Traders can expect that crude oil prices can move higher as lesser inventories yesterday and Fed bond buying can support the prices.

Crude-oil futures prices trimmed earlier gains yesterday, after U.S. weekly data showed implied oil demand fell last week to its lowest level since Jan. 4. NYMEX oil futures gained also because of bargain buying after declining in the previous session due to Eurozone economic concerns and anticipation of rise in the US crude oil stock in the week ended Friday.

Crude oil recovered a bit from previous day’s loss to close higher, fueled by higher refinery processing rates and despite concerns over signs of weak gasoline demand ahead of the peak driving season.

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.

U.S. investment-manager guru says silver a good bet

                       Every few months, star U.S. investment manager Jeffrey Gundlach gives a webcast outlining where in the world he sees the best money-making opportunities.

In his latest webcast, Mr. Gundlach made three simple calls. Buy silver. Pick up 30-year U.S. Treasury bonds. And for stock investors, go to Japan. That Asian market, even though it's surging, could rise more than 20 per cent in U.S. dollar terms this year.

You could do worse than paying attention to Mr. Gundlach, who was once dubbed the King of Bonds for his winning ways in fixed-income markets, although he's been branching out quite a bit from his credit-market specialty.I listen to a lot of forecasts by investment gurus, and some are so dull and equivocating I often fear I'll need a trip to the office defibrillator to jolt myself back to consciousness afterwards.

Not so with Mr. Gundlach, who is always bright. He's founder of his own Los Angeles money management firm, DoubleLine Capital, which he set up after being abruptly fired in 2009 from Trust Company of the West. His main fund at TCW regularly ranked in the top 1 or 2 per cent in the performance sweepstakes and he's continued to outperform at DoubleLine.

Mr. Gundlach is going against the hedge-fund herd on his silver call, which is based on his bullish view on gold. In recent months, gold ETFs have experienced some of their largest outflows in years, and some noted hedge-fund operators, such as George Soros, have cut their positions in the yellow metal. By going on the other side of this trade, Mr. Gundlach is sticking his neck out in a high-profile way.

Crude Oil Climbs On US Data

                                        Crude oil continues to trade positively this morning, as investors weighed the outlook for the market following positive US economic data and a forecast for lower global demand growth. US crude oil is trading at 93.32 gaining 29 points in the Asian session. Brent crude oil prices rose toward $110 per barrel on Thursday, rebounding after four days of losses, on reports of a recovery in the US labor market.

Crude oil were higher yesterday, after data showing that U.S. jobless claims fell unexpectedly last week added to signs of a strengthening economic recovery. Separate reports showed that producer price inflation in the U.S. rose in line with expectations in February, while core prices inched up slightly. The Bureau of Labor Statistics said that producer prices rose by a seasonally adjusted 0.7% in February, in line with expectations, after rising 0.2% in January. The core producer price index eased up 0.2% in February, in line with expectations after rising 0.2% in January. The unexpectedly strong data, together with recent upbeat data on nonfarm payrolls and retail sales fuelled optimism over the strength of the U.S. economic recovery. The U.S. is the world’s biggest oil-consuming country, responsible for almost 22% of global oil demand. Oil’s gains were limited as concerns over the

Crude Oil and Natural Gas Trade On A Positive Note Ahead Of EIA Inventory

         In the Asian session crude oil continues to gain trading at 92.72 adding 18 cents. West Texas Intermediate oil traded near the highest level in two weeks after an industry report showed U.S. crude stockpiles fell for the first time in a month. The API weekly report released prior to the official EIA inventory showed a decline in stock after the EIA showed a surprising increase in inventory last week. Crude supplies declined by 1.4 million barrels. 

Analysts polled were looking for a 2.3 million-barrel climb. Gasoline inventories also fell by 3.1 million barrels, while distillate stockpiles lost 2.2 million barrels, the trade group said. Analysts forecast a fall of 1.5 million barrels for gasoline supplies and a 2 million-barrel decline for distillate stockpiles.  This week’s EIA projected inventory is expected to show that crude oil added 2.4mn barrels differing from the API release yesterday.

Brent crude oil prices declined for the third straight session in choppy trading session, while US oil posted a fourth consecutive gain, tightening the spread between the two contracts to the narrowest since January. On Tuesday the EIA cut its 2013 world oil demand forecast but also cut the forecast for non-OPEC output having a neutral effect on the markets.

IEA Report Weighs On Crude Oil Prices

                         This morning crude oil continues to ease dipping 23 cents to trade at $92.28. Crude oil retraced back from the high of $93.40 and in the process settled lower yesterday at $92.51. A rise in US oil inventories and bearish forecast from the IEA weighed on the sentiment. The EIA reported that crude stocks rose 2.62mn barrels compared with the expectations for a rise of 2.3mn barrels. Meanwhile, International Energy Agency has cut estimates for global oil demand. Crude oil prices closed slightly lower, as better than-expected US retail sales lifted the dollar to a 7-month high, putting an end to a climb in dollar-denominated assets. The dollar climbed to a 7-month high against a basket of currencies and a 3-month peak against the euro on Wednesday, as robust US retail sales data bolstered prospects for the world’s largest economy. The dollar index rose to 82.882, after a high of 83.055 — its highest level since early August and compared with 82.585 on late Tuesday.

The International Energy Agency most recent report just released continued to inch lower on its forecasts for global oil demand while increasing its expectations of supply growth for this year.
Since January, the Paris-based energy watchdog has cut 200,000 barrels a day from its forecast for oil demand in 2013 and added 200,000 barrels a day to its expectations of supply growth from countries outside the Organization of Petroleum Exporting Countries, or OPEC. 

Gold and Silver Give Back A Bit Of Yesterday’s Gains

This morning in Asian trading precious metals are giving back some of yesterday’s gains, with gold trading down $2.20 at 1586.80 and silver at 28.813. On Wednesday gold prices started the trading day on a strong note, however the gains faded at the end of the trading session.

 The gains were scaled back, as strong US retail sales number for February boosted the appetite for riskier assets. The retail sales registered an increase of 1.1%, substantially above the estimates. Effectively, US equity markets have ended higher on nine consecutive trading sessions. Gold prices once again shied away from the psychological resistance of US$1,600/ounce and in this process registered a high, just 0.5 cents below this level.

During the Asian session today, traders saw positive eco data as Australian employers boosted payrolls in February by the most in almost 13 years, sending the currency to a one-month high as traders wound back bets the central bank will keep cutting interest rates. While on its neighbors listened as New Zealand’s central bank expects to keep borrowing costs at a record low until next year and signaled it may reduce its benchmark rate if the local dollar rises more than the economy justifies. The kiwi fell.