Commodities Trading: 31 January 2014
Reassurance that economic growth in the US is gathering speed certainly did not leave the energy sector indifferent.
The demand for crude oil is expected to surge, so investors pushed the WTI futures market $0.61 higher to $98.04 per barrel.
These gains are only going to be supported by the lingering cold weather in the Midwest.
The combination of faster US growth and additional Fed tapering took its toll on gold spread betting prices
yesterday, with the precious metal posting a steep decline of $24.2 to close at $1,243.6.
Not even the growing fears over emerging markets could stop the falls as investors favoured the dollar in the safe haven game.
Commodities Trading: 30 January 2014
In commodities trading
, the weekly US crude stockpiles report climbed by 6.4 million barrels, surpassing expectations for a rise of just 2.2 million barrels.
That triggered an initial drop in crude prices, although the pull back proved to be short-lived as the cold weather is expected to have increased demand for distillates to a five year high.
In the end, the US crude oil market closed $0.25 higher at $97.42.
It seems that the turmoil in emerging markets managed to eclipse the news of further tapering in the US, which would normally have brought more trouble for gold bugs.
Thus, the renewed demand for a safe haven drove gold prices $10.6 higher to $1,267.5.
Commodities Trading: 29 January 2014
The stronger than expected US economic data
sparked a rally in crude oil as demand for energy remains strong amid a wave of arctic cold.
As a result, Nymex crude prices rebounded by $1.50 to $97.18 per barrel, also supported by a rise in equities.
Later today, the US Department of Energy will release its weekly inventories report, with crude stocks predicted to have risen by 2.2 million barrels.
Gold failed to attract any extra interest yesterday as all eyes were on the US to see whether the economic data can support the case for accelerated tapering.
If anything, the fact that the yellow metal closed simply unchanged at $1,256.7 could be considered a rather decent performance.
Commodities Trading: 28 January 2014
A below-par new home sales report in the US made investors question the 'strong' economic momentum.
There's also widespread anticipation that the Fed will stay on course with its current plan and continue to curb stimulus.
The concerns easily spilled over into the energy complex, pushing US crude oil $1.22 lower to $95.66.
After initially moving to an intraday high of $1,279.2, the strongest level since late November 2013, the gold spread betting market
reversed course to end the day $13.4 lower at $1,256.9.
The main culprit was probably the incoming FOMC meeting which is expected to show another cut in stimulus and thus lower the need for gold as a store of value.
Commodities Trading: 27 January 2014
The energy complex was a rather mixed bag on Friday.
Whilst Brent crude remained strong, West Texas Intermediate dropped by $0.49 to $96.86 per barrel, largely because of the falls in US shares
The fall was accentuated as the flow of US crude is expected to rise this year following the opening of the southern leg of the Keystone pipeline.
A steep decline in equities heightened demand for gold as a safe haven, pushing its price $4.8 higher to $1,268.8.
Although it's too early to say, if a flight to safety is upon us, it would definitely be encouraging for gold bugs to see the precious metals creeping back into the spotlight.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Jonathan Sudaria, 31 January 2014