Commodities Trading: 25 July 2014
Despite a draw in the weekly oil inventories report, it appears that global supply output is looking healthy enough to maintain downward pressure on crude prices.
As such, WTI futures gave back their midweek gains, retracing $1.19 to $102.02 per barrel in the face of yet another expansion for Chinese manufacturing.
Signs that the global economy is continuing to improve sent gold plunging as demand for a safe haven was reduced.
The precious metal moved below the psychologically important $1,300 mark and finished the day $10 lower at $1,293.9 amid predictions from Goldman Sachs of a decline below $1,100 by the end of 2014.
Commodities Trading: 24 July 2014
The weekly crude stockpiles report, as shown by the US Department of Energy, plunged by almost double the estimates, sparking another rally in oil prices.
In addition, gasoline inventories slumped to their lowest level in nearly five months, accentuating the gains that saw WTI crude add $1.28 to $103.26.
With the S&P 500
setting a new record high amid easing concerns in Ukraine, demand for precious metals as an alternative asset was hit.
This saw gold lose $3.2 to close at $1,304.2 and the market has already crossed below the $1,300 mark this early morning.
Commodities Trading: 23 July 2014
Some energy investors got cold feet yesterday, thinking that the crude oil market remains a little ahead of itself despite falling crude supplies.
This encouraged some quick profit taking, which pushed WTI crude $0.81 down to $101.92.
The weekly oil inventories report due to be released later today by the US Department of Energy should shed some light on the issue.
A rally in stock market equities and a stronger US dollar took the shine away from precious metals yesterday.
On top of that, US economic data showed that inflation continues to be fairly subdued, meaning that gold
's fall of just $4.2 to $1,307.5 might actually be considered a resilient performance.
Commodities Trading: 17 July 2014
A larger than estimated draw in US crude oil inventories, down 7.5 million barrels against a forecast drop of 2.1 million barrels, allowed WTI prices to rebound yesterday.
In addition, China's economic growth exceeded expectations, accentuating the rally which saw the futures market close $1.31 higher at $101.52.
Yesterday's price action in the gold CFD market
looked like a dead cat bounce after two days of significant losses.
The strong outlook in the US restricted the rebound to just $5.6, with the precious metal closing at $1,299.4, as equities and crude oil attracted most of investors' interest.
Commodities Trading: 16 July 2014
Easing concerns over tensions in Iraq and Libya took their toll on the oil market yesterday, adding further downside pressure to WTI crude.
This encouraged a slump into double digits, but a late rebound pushed the market back above the psychologically important $100 mark, closing the day $0.78 lower at $100.19.
After Fed Chair Janet Yellen acknowledged that a hike in US interest rates may come sooner than predicted, we saw a strengthening dollar and a drop in gold prices.
The precious metal plunged below the $1,300 level, dropping $14 in the process to finish at $1,293.9.
Commodities Trading: 15 July 2014
In the energy markets
, bargain hunters spotted an opportunity and jumped in during early trading yesterday, pushing Nymex crude $0.58 higher to $101.04 per barrel.
However, the futures market is near a two month low and, considering that US oil supplies remain plentiful, further weakness for crude oil is a distinct possibility.
With a renewed rally for equities and easing fears over Portugal's banking system, investors saw no reason to pay the safety premium for gold.
As a consequence, they pushed the precious metal sharply lower, with the market tumbling $31.5 to $1,307.2.
Commodities Trading: 14 July 2014
Easing concerns over crude oil
supplies in Iraq and Libya triggered a sharp selloff in WTI prices on Friday, which closed $2.12 down at $100.74 per barrel.
The move was accentuated by news that crude stockpiles at Cushing, Oklahoma the delivery point for US crude climbed last week, with gasoline inventories also rising.
Gold prices moved higher on safe haven demand as financial troubles re-emerged in Europe, with the metal closing $2.3 up at $1,338.
However, we saw a pullback overnight as the banking woes in Portugal did not escalate.
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, 25 July 2014