Commodities Trading: 25 April 2014
As the Russian military begins drills on the Ukrainian border to further fuel an already tense situation, the future supply of energy is understandably called into question, resulting in a hike of the oil price.
West Texas Intermediate is less sensitive to the current circumstance than Brent crude and would have made more gains but for the recent news of increasing stockpiles.
As a result, US crude closed up $0.06 at $102 having lost over 2% this week.
Gold jumped quickly to reverse losses on news of difficulties in Eastern Europe.
Investors quickly lost their risk appetite and headed for the safe havens that have been so deserted recently.
Upbeat data had previously given the dollar a boost, and thus gold a decline, but this all reversed in the afternoon.
The precious metal closed up $10 at $1,292.
Commodities Trading: 24 April 2014
As expected, oil stockpiles in the US rose to their highest levels since records began.
The move south in the price of US crude oil had already taken this into account so the support remained present in the session.
WTI did see a small decline however, closing the session $0.31 lower at $101.44.
Gold had a calm day on Wednesday and managed to make small gains as the momentum in equities seems to have reached some resistance.
It is a nervy time for gold investors though as generally more positive data seems to be returning to the headlines following the weather affected winter.
Spot gold remained unchanged on the day at $1,285.
Commodities Trading: 23 April 2014
US crude oil
suffered a significant sell off yesterday, losing more than 2% in the session to close at around $102 per barrel.
Investors decided that expectations of increased supply was more important than the continuing concerns in Ukraine and the potential impact of sanctions that may be imposed on Russia.
It is predicted that oil supply could exceed an all-time high this week.
A classic 'risk on' day hurt the price of gold again on Tuesday.
Strong data and strong corporate news strengthened the case for riskier assets, and an efflux from gold was the result.
The precious metal hit a two month low at one point during the session but did manage to rebound slightly to regain some losses.
Regardless, the market closed down $6 at $1,284.
Commodities Trading: 22 April 2014
The focus in the commodities space
will continue to look towards the ongoing tensions in the Ukraine.
Fear that the conflict would disrupt Russian oil and other energy exports provided the support for US Crude oil on Monday.
The June futures contract settled up $0.35 at $103.37 per barrel.
Oil was also helped by the Leading Indicators reading which buoyed optimism for future demand.
Gold is now trading at a three week low as its appeal as a safe haven investment reduces in the face of stronger demand for equities and a lack of fresh stories from Eastern Europe.
Blame is also being pointed at recent EFT outflows, with the precious metal closing $5 lower at $1,291.
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 April 2014