Gold prices drop as markets brace for Fed tapering
Gold prices dropped on Thursday after investors took up positions on expectations that the Federal Reserve next week will announce plans to begin tapering its monthly USD85 billion asset-purchasing program.
Gold futures were likely to find support at USD1,315.40 a troy ounce, the low from Aug. 14, and resistance at USD1,416.30, Tuesday's high.
Consensus began to build on Thursday that the Federal Reserve will announce plans to begin tapering its monthly USD85 billion asset-purchasing program at its Sept. 17-18 policy meeting, especially on the coattails of improving data out of the U.S. labor market hitting the wire earlier.
The Department of Labor said earlier that the number of individuals filing for initial jobless claims in the U.S. fell by 31,000 to 292,000 from 323,000 in the previous week.
Analysts were expecting the number to rise by 7,000 to 330,000, though the report said the decline was largely due to two states not processing all of their claims because of computer upgrades.
Gold futures were likely to find support at USD1,315.40 a troy ounce, the low from Aug. 14, and resistance at USD1,416.30, Tuesday's high.
Consensus began to build on Thursday that the Federal Reserve will announce plans to begin tapering its monthly USD85 billion asset-purchasing program at its Sept. 17-18 policy meeting, especially on the coattails of improving data out of the U.S. labor market hitting the wire earlier.
The Department of Labor said earlier that the number of individuals filing for initial jobless claims in the U.S. fell by 31,000 to 292,000 from 323,000 in the previous week.
Analysts were expecting the number to rise by 7,000 to 330,000, though the report said the decline was largely due to two states not processing all of their claims because of computer upgrades.
Crude prices rise as U.S., Russian hold talks on Syria
Crude oil futures rose on Thursday amid uncertainty over whether diplomatic efforts between the U.S. and Russia will reduce the likelihood Washington hits Syria with military strikes.
U.S. Secretary of State John Kerry is due to meet with his Russian counterpart Sergei Lavrov in Geneva later to discuss terms for Syria to surrender its chemical weapons.
Oil rose on concerns talks may hit snags and hike the chances of U.S.-led limited military strikes against Syria, which energy investors fear would engulf the broader oil-rich Middle East and threaten global supply,
Global demand forecasts boosted oil prices as well.
In its monthly report, the International Energy Agency said that global oil demand is forecast to rise by 1.1 million barrels a day next year, “as the underlying economic situation continues to improve.”
The IEA added that oil supplies from the Organization of the Petroleum Exporting Countries fell by 260,000 barrels to 30.51 million barrels per day in August, due to declining output from Libya.
Improving data out of the U.S. labor market supported prices as well by painting a picture of an improving U.S. economy that will likely demand more fuel and energy going forward.
The Department of Labor said earlier that the number of individuals filing for initial jobless claims in the U.S. fell by 31,000 to 292,000 from 323,000 in the previous week.
U.S. Secretary of State John Kerry is due to meet with his Russian counterpart Sergei Lavrov in Geneva later to discuss terms for Syria to surrender its chemical weapons.
Oil rose on concerns talks may hit snags and hike the chances of U.S.-led limited military strikes against Syria, which energy investors fear would engulf the broader oil-rich Middle East and threaten global supply,
Global demand forecasts boosted oil prices as well.
In its monthly report, the International Energy Agency said that global oil demand is forecast to rise by 1.1 million barrels a day next year, “as the underlying economic situation continues to improve.”
The IEA added that oil supplies from the Organization of the Petroleum Exporting Countries fell by 260,000 barrels to 30.51 million barrels per day in August, due to declining output from Libya.
Improving data out of the U.S. labor market supported prices as well by painting a picture of an improving U.S. economy that will likely demand more fuel and energy going forward.
The Department of Labor said earlier that the number of individuals filing for initial jobless claims in the U.S. fell by 31,000 to 292,000 from 323,000 in the previous week.
Natural gas surges on surprisingly bullish U.S. supply data
Natural gas prices shot up on Thursday after official U.S. inventory data revealed the country's stockpiles rose less than expected last week, while investors kept their eyes an increasingly active Atlantic hurricane season as well.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.651 per million British thermal units during U.S. trading, up 2.34%.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 6 rose by 65 billion cubic feet, below market expectations for an increase of 66 billion cubic feet.
Inventories increased by 27 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 62 billion cubic feet.
Total U.S. natural gas storage stood at 3.253 trillion cubic feet as of last week. Stocks were 172 billion cubic feet less than last year at this time and 46 billion cubic feet above the five-year average of 3.207 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 114 billion cubic feet below the five-year average, following net injections of 49 billion cubic feet.
Stocks in the Producing Region were 106 billion cubic feet above the five-year average of 993 billion cubic feet after a net injection of 14 billion cubic feet.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.651 per million British thermal units during U.S. trading, up 2.34%.
The U.S. Energy Information Administration said in its weekly report that natural gas storage in the U.S. in the week ended September 6 rose by 65 billion cubic feet, below market expectations for an increase of 66 billion cubic feet.
Inventories increased by 27 billion cubic feet in the same week a year earlier, while the five-year average change for the week is a build of 62 billion cubic feet.
Total U.S. natural gas storage stood at 3.253 trillion cubic feet as of last week. Stocks were 172 billion cubic feet less than last year at this time and 46 billion cubic feet above the five-year average of 3.207 trillion cubic feet for this time of year.
The report showed that in the East Region, stocks were 114 billion cubic feet below the five-year average, following net injections of 49 billion cubic feet.
Stocks in the Producing Region were 106 billion cubic feet above the five-year average of 993 billion cubic feet after a net injection of 14 billion cubic feet.
Economic Events:
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
14:30
|
EUR
|
Employment Change (QoQ)
|
-0.20%
|
-0.50%
|
14:30
|
EUR
|
Employment Change (YoY)
|
-1.00%
| |
14:30
|
EUR
|
Trade Balance
|
15.3B
|
14.9B
|
18:00
|
USD
|
Core PPI (MoM)
|
0.10%
|
0.10%
|
18:00
|
USD
|
Core PPI (YoY)
|
1.30%
|
1.20%
|
18:00
|
USD
|
Core Retail Sales (MoM)
|
0.30%
|
0.50%
|
18:00
|
USD
|
PPI (MoM)
|
0.20%
|
0.00%
|
18:00
|
USD
|
PPI (YoY)
|
1.30%
|
2.10%
|
18:00
|
USD
|
Retail Sales (MoM)
|
0.40%
|
0.20%
|
19:25
|
USD
|
Michigan Consumer Sentiment
|
82
|
82.1
|
19:25
|
USD
|
Michigan Inflation Expectations
|
3.00%
| |
19:30
|
USD
|
Business Inventories (MoM)
|
0.20%
|
0.00%
|
20:00
|
USD
|
ECRI Weekly Annualized (WoW)
|
3.90%
| |
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