Gold Continues To Be In Doldrums

Gold....

Gold futures tumbled back in the Asia electronic trades today as traders take profits after yesterdays climb in prices. Oil futures also pulled below $94 a barrel exerting pressure on the metal.
Gold ended higher yesterday due to a weak US dollar. The weekly U.S. jobless claims report was released on Thursday and showed a bigger decline in claims than expected, but the data had little impact on the metals.
Gold for June delivery is trading down $4 at $ 1560.9 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it ended higher by $6.1 or 0.4% at $1,564.9 an ounce. Prices had shed almost 2% a day earlier.
Gold prices slid Wednesday after the release of Goldmans note and Federal Open Market Committee minutes detailing Fed discussions of an end to its stimulus efforts. Gold for April delivery fell $27.90 an ounce, or 1.8%, to $1,558.30 on the Comex division of the New York Mercantile Exchange.
Investment bank Goldman Sachs Group Inc. said Wednesday that golds prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts. The shift in outlook was the latest among banks and investors who have soured on gold as its dozen-year runup has been followed by a 12% decline in the last six months.
Goldmans note followed another major blow to the metal last week from Soci�t� G�n�rale. The French bank declared The End of the Gold Era in the title of its report, positing not just the possibility of a bear market but an outright crash and saying gold may have had its last hurrah.
Deutsche Bank and UBS both cut their average gold price forecasts yesterday, to $1637 and $1740 respectively.
MCX June gold futures may open todays session near Rs 29170 levels with support around Rs 29070 levels and resistance near Rs 29220 levels.Yesterday, it closed lower by Rs 46 at Rs 29,184 per ten grams. Prices rose to a high of Rs 29,288 per 10 grams and fell to a low of Rs 29,055 per 10 grams during the days trading.
Source by Commodity Insights

Commodities Buzz: OPEC Oil Output Falls In March: Platts Survey

Oil production from the Organization of the Petroleum Exporting Countries fell by 170,000 barrels per day in March from a month earlier to 30.25 million barrels per day, according to a Platts survey of OPEC and oil industry officials and analysts released Wednesday. Output from Saudi Arabia was at 9.2 million barrels per day in March, unchanged from February, Platts said. Overall, the March survey showed that OPECs oil production is running about 250,000 barrels per day above the cartels 30 million barrel-per-day production ceiling. OPECs next meeting is set for May 31 in Vienna. On Wednesday, the group cut its oil demand forecast for this year.Source by Commodity Insights

Gold Recovers After Big Drop

Gold....

Gold futures recovered slightly in the Asia electronic session today getting some safe haven appeal after the commodity slumped yesterday on cut in the price forecast by Goldman Sachs. Investment bank Goldman Sachs Group Inc. said Wednesday that golds prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts. The shift in outlook was the latest among banks and investors who have soured on gold as its dozen-year runup has been followed by a 12% decline in the last six months. Gold prices slid Wednesday after the release of Goldmans note and Federal Open Market Committee minutes detailing Fed discussions of an end to its stimulus efforts. Gold for April delivery fell $27.90 an ounce, or 1.8%, to $1,558.30 on the Comex division of the New York Mercantile Exchange. Goldmans note followed another major blow to the metal last week from Société Générale. The French bank declared "The End of the Gold Era" in the title of its report, positing not just the possibility of a bear market but an outright crash and saying "gold may have had its last hurrah." Deutsche Bank and UBS both cut their average gold price forecasts yesterday, to $1637 and $1740 respectively. China, the worlds second-biggest gold buying nation last year, recorded an $884 million trade deficit in March, official figures published Wednesday show. Year-on-year export growth fell to 10%, down from nearly 22% a month earlier, while imports rose by 14% from a year earlier. MCX April gold futures tumbled nearly 2% yesterday to end the session at Rs 29230 per 10 grams. It may open slightly higher today at Rs 29270 levels with resistance near Rs 29350 levels and support near Rs 29200 levels. Source by Commodity Insights

Crude Fails To Hold Above $94 Ahead Of US Data

Oil....

MCX Crude oil futures slipped in intraday moves today, easing after gains in the last session as traders booked profits amid a largely positive undertone in the global equity markets. Upbeat reports on Chinese economic front and a weak dollar initially supported the commodity in Asian trades but the sentiments weakened in afternoon and the benchmark WTI futures are quoting at $93.80, down 40 cents per barrel on the day.

Oil started on a positive note as stocks edged up in Asia. Chinese General Administration of Customs reported that the imports surged 14.1% from a year earlier in March. The country recorded a trade deficit of $880 million in March, swinging from February's $15.2 billion surplus. The exports went up by 10% from March 2012. The gains in equities resulted in a continued moderation in the US dollar. The greenback slipped to a five week low above 1.3100 levels against the Euro.

Crude futures edged up yesterday, adding 84 cents, or 0.9%, to $94.20 a barrel on the New York Mercantile Exchange, as traders eyed a 6.3 richer scale earthquake in Iran. However, the oil supplies data from American Petroleum Institute calmed the overall trading scenario.

Crude oil supplies were up 5.1 million barrels in the last week, according to data from the American Petroleum Institute. The total stocks for the week ended March 29 were also upwardly revised by more than 500,000 barrels. The API also noted that gasoline stockpiles last week unexpectedly rose to 1.96 million barrels, while distillate stockpiles fell by 1.3 million barrels.

WTI futures found it difficult to hold on above $94 per barrel in electronic trades today as traders eyed a key supplies report from the US department of energy tonight. MCX Crude oil came down from highs of Rs 5132 per barrel and currently trades at Rs 5107, unchanged on the day with 18.40% increase in the open interest.
Source by Commodity Insights

Commodities Buzz: Deutsche Bank Cuts Gold, Silver Forecast For 2013

Deutsche Bank Tuesday cut its outlook on gold prices for this year and next, citing mounting headwinds from a strengthening dollar, improving U.S. growth and an increasing appetite for equities over commodities.
The bank reduced its 2013 average gold forecast by 11.8% to $1,637 a troy ounce, and trimmed its 2014 forecast 4.7% to $1,810/oz. Spot gold currently trades at around $1,574/oz on the European spot market.
Deutsche Bank also downgraded its view on silver prices for this year and next, reducing its 2013 forecast by 16.5% to $31/oz and its 2014 outlook by 10.1% to $34/oz.
Deutsche Bank also cut its base metal forecast for this year, based on its expectations for subdued global consumption growth.
For 2013, the bank cut its aluminum outlook by 4.2% to $2,035/ton; trimmed its copper outlook by 3.2% to $7,865/ton; cut its lead forecast by 1.6% to $2,152/ton; and reduced its nickel forecast by 5.1% to $16,844/ton. It also cut its tin outlook for this year by 3.2% to $22,146/ton and cut its zinc outlook 5.7% to $2,051/ton. Deutsche Bank also trimmed its 2014 forecast for aluminum, lead, nickel and zinc.
Source by Commodity Insights

Commodities Buzz: EIA Ups WTI Oil, Natural-Gas Price Forecasts

Energy.....

 The U.S. Energy Information Administration on Tuesday raised its West Texas Intermediate crude-oil and natural-gas price forecasts for this year, from its March estimates. WTI crude-oil prices are likely to average $94 in 2013, the EIA said in its short-term energy outlook report. In March, it forecast an average of $92 in for 2013. The EIA also expects natural-gas spot prices to average $3.52 per million British thermal units this year, up from a previous estimate of $3.41. For 2014, however, it forecast $3.60 per million Btus, down from $3.63 in the March report. Regular U.S. retail gasoline prices were to average $3.56 a gallon this year, up a penny from the March estimate of $3.55.
Source by Commodity Insights

Copper Up In Asian Trades, Ignores Decline In Chinese Imports

Copper......
China Copper imports declined in the month of March but the traders have continued to ignore the fact in early Asian trades. LME Copper prices are up by $ 76 per tonne at $ 7592 per tonne on Wednesday. Even as Asian Development Bank raised the forecast of China GDP to 8.2 percent from 8.1 percent earlier, China has shown rise in trade deficit. The General Administration of Customs reported that the China exports increased by 10 percent in March on a yearly basis while imports increased by 14.1 percent.
The whole metals pack can move down as the day progresses considering decline in Chinese import capacities of metals. The drawdown in imports is due to slackness in demand and heavy stockpiles in the warehouses. China Copper and Copper products imports declined by 31 percent to 319603 tonnes in March. Meanwhile, cumulative imports of Copper were 967632 tonnes in between January-March 2013, down 29 percent.
Markets are expected to turn focus on Federal Reserve minutes going forward. This will give the signal on which way the quantitative easing programmer will shift. Loose monetary policy will aid the metals while any suggestion of withdrawing treasury buying early will derail the metals.
Dollar was static at 1.3086 against the Euro. In last few days, greenback has been in pressure against the European counterpart. Dollar has broken 1.5% of its value in one week. Indian Rupee was seen at 54.47, up 0.24 percent against the Dollar. The rise in Rupee will create friction in the opening elevation of Copper and other metals.
Indian Copper futures on MCX platform, ended at Rs 414.5 per kg, up 1.6 percent on 9 April 2013. The prices are resisted at Rs 415.5 and 416.5 per kg. Supports for the contract are at Rs 411.5 per kg. Among other metals, galvanizing material Zinc closed at Rs 103.7 per kg, up 1 percent.
Source by Commodity Insight