Commodities Trading: 04 April 2014
It appears that hopes of restoring oil exports in Libya might be harder to materialise as tensions between the government and the rebels remain.
So the energy complex undid the previous sessions' slump in oil prices.
Thus, Nymex rebounded into the triple digits area, gaining $1.11 to $100.43 despite a stronger dollar.
The plunging demand for hedging refuses to go away for gold spread trading
The precious metal headed south again yesterday, losing $3.8 to $1,286.6 even on weaker US economic data.
This shows how the precious metal is currently an out of favour investment.
Commodities Trading: 03 April 2014
Despite a fall in crude oil inventories of 2.4 million barrels, compared with a forecast for a 1.3 million barrels build, US crude dropped by $0.41 to $99.28.
A slightly higher US dollar, coupled with reports that Libyan rebels are ready for talks to reopen oil ports, overshadowed the stockpiles data.
Bargain hunters finally emerged from wherever they were sleeping and pushed up gold prices, with the metal moving $10.5 higher to $1,289.9 yesterday.
Although physical demand is expected to pick up at these low prices, a resumption of the downtrend cannot be discarded.
Commodities Trading: 02 April 2014
The energy complex took more of an interest in the fact that US manufacturing data came in less than estimated implying less demand for oil.
At the same time, overall crude stockpiles are seen gaining for the eleventh week which added downside pressure for oil prices.
So, US crude posted a steep plunge of $1.81 to reach $99.68.
Another rally in equities
enticed investors to discard precious metals and look for higher yielding investments.
At the back of their minds, there is that speech from the Fed Chair about raising rates sooner rather than later.
As a result, gold continued its nasty nosedive, losing another $5.3 to $1,278.8.
Commodities Trading: 01 April 2014
Although talks between the US and Russia ended with no real results, at least both sides agreed that there needs to be a diplomatic solution over Ukraine.
The energy complex took that with a pinch of salt and so the Nymex crude oil closed just $0.18 lower at $101.48.
resumed its slump yesterday, losing $10.7 to $1,284.4 amid a renewed rally for equities which reduced the need for a safe haven.
In addition, there was talk in the markets of a Japanese tax change which had recently seen gold sales increase.
Commodities Trading: 31 March 2014
With US consumer spending coming in rather resilient, it was a signal for the energy complex that the economic outlook remains positive.
As a result, spread betting
investors pushed WTI crude prices $0.25 higher to $101.60 per barrel.
Additionally, there is still a lot of concern regarding Russia's possible invasion of eastern Ukraine which should continue to offer support.
We saw a dead cat bounce in gold trading on Friday as ongoing signs of US economic recovery imply further tapering and eventually an interest rate hike.
The precious metal rebounded $3.4 to $1,295.4, but its short-term trend now looking steeply bearish.
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, 4 April 2014