18 Mar 2013
Markets are very volatile on Monday morning reacting to news of a bailout agreement with Cyprus. The new agreement calls for a tax on all bank deposits which is upsetting traders and depositors around the globe. Russian citizens are estimated to have 2 billion dollars on deposit in Cyprus, as well as global citizens that live in Cyprus, even the UK military that keeps a force of 3000 soldiers deployed on the island. The wide range of effects has yet to be seen but this morning the euro and Asian equities are taking a major tumble.
The surprise as traders move to safety is that gold is seeing little change. Gold is trading at 1596.00 adding $3.40 while silver tumbled to 28.723. Gold closed higher on Friday, marking its second straight weekly gain in the international market, as the euro firmed, US and European shares fell and the US consumer price report supported the view that the Federal Reserve has leeway to keep up its monetary easing. Gold remains in a difficult situation with the FOMC meeting on the 20th as traders are not sure what to expect from Mr. Bernanke and associates.
Gold climbed past the coveted $1600 mark in Asian trade Monday as yet another EU member forced to accept a bailout plan.
Gold was seen trading at $1608.34 an ounce at 12.00 noon Singapore time while U.S. Gold was seen at $1607.05 an ounce on the comex division of nymex.
Analysts said the precious yellow metal is likely to extend gains during the day as Cyprus bailout package threatened to trigger fresh turmoil in the euro zone, driving investors to seek safety in gold.
Natural gas futures ended Friday’s session at a 15-week high, as a bigger-than-expected drop in U.S. supplies and forecasts showing colder weather in the upcoming week boosted near-term demand expectations for the heating fuel.
Natural gas prices have closely tracked shifting weather forecasts in recent weeks, as traders try to gauge the impact of shifting forecasts on late-winter heating demand.
On the New York Mercantile Exchange, natural gas futures for delivery in April jumped 1.25% Friday to settle at USD3.860 per million British thermal units by close of trade.
Earlier in the day, Nymex gas prices rose to a session high of USD3.924 per million British thermal units, the strongest level since November 26.
New York-traded crude oil futures rose to a three-week high on Friday, as upbeat U.S. economic data added to the view that the nation’s recovery was gaining momentum, lifting hopes for higher oil demand.
An improving economy is generally correlated with increased demand for oil and fuel products like gasoline.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
On the New York Mercantile Exchange, light sweet crude futures for delivery in April rose 0.6% Friday to settle the week at USD93.58 a barrel by close of trade.
Nymex prices rose to as high as USD93.82 earlier in the day, the strongest level since February 25. On the week, New York-traded oil futures tacked on 1.85%, 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.
Gold futures ended Friday’s session mildly higher, as a broadly weaker U.S. dollar and indications the Federal Reserve will keep its asset-purchase program in place for the indefinite future boosted the appeal of the precious metal.
Moves in the gold price this year have largely tracked shifting expectations as to whether the Fed could bring quantitative easing to an end this year.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery eased up 0.1% on Friday to settle the week at USD1,590.90 a troy ounce. On the week, gold futures prices posted a gain of 0.8%, the second straight weekly advance.
Earlier Friday, prices rose to a session high of USD1,597.80 a troy ounce, just below a two-week high of USD1,598.00 a troy ounce hit on March 13.
Monday, March 18, 2013 Aluminum, Base Metals, Commodity, Copper, Crude Oil, Energy, GOLD, Intraday levels, Natural Gas, Precious Metal, Silver, Zinc No comments
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