Gold prices drop as U.S. holds off on plans to attack Syria
Gold prices dropped on Wednesday after the U.S. voiced support for a Russian plan calling on Syria to give up control of its chemical weapons and avoid military conflict.
Gold has served as a safe-haven asset class during the U.S. standoff over Syria.
Gold futures were likely to find support at USD1,351.90 a troy ounce, the low from Aug. 20, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.64% at USD1,364.00 a troy ounce on Tuesday.
U.S. President Barack Obama on Tuesday put on hold plans to attack Syria for its alleged use of chemical weapons in its civil war by asking Congress to put off voting on the matter while the country explores Russia's proposal to end the crisis.
President Obama added his administration would support a Russian plan to take away Syria's chemical weapons cache that would put U.S. military strikes on hold.
Waning fears of military conflict tarnished gold's safe-haven appeal, though monetary uncertainty in the U.S. supported the precious metal.
Doubts persist as to whether the Fed will announce plans to begin tapering its monthly USD85 billion asset-purchasing program at its Sept. 17-18 policy meeting.
Lackluster U.S. economic indicators have many investors concerned the Fed may delay plans to begin scaling back asset purchases to later this year, while others feel a September start date will see very minor tapering that would keep the dollar soft and gold higher, as the two assets trade inversely with one another.
Gold has served as a safe-haven asset class during the U.S. standoff over Syria.
Gold futures were likely to find support at USD1,351.90 a troy ounce, the low from Aug. 20, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.64% at USD1,364.00 a troy ounce on Tuesday.
U.S. President Barack Obama on Tuesday put on hold plans to attack Syria for its alleged use of chemical weapons in its civil war by asking Congress to put off voting on the matter while the country explores Russia's proposal to end the crisis.
President Obama added his administration would support a Russian plan to take away Syria's chemical weapons cache that would put U.S. military strikes on hold.
Waning fears of military conflict tarnished gold's safe-haven appeal, though monetary uncertainty in the U.S. supported the precious metal.
Doubts persist as to whether the Fed will announce plans to begin tapering its monthly USD85 billion asset-purchasing program at its Sept. 17-18 policy meeting.
Lackluster U.S. economic indicators have many investors concerned the Fed may delay plans to begin scaling back asset purchases to later this year, while others feel a September start date will see very minor tapering that would keep the dollar soft and gold higher, as the two assets trade inversely with one another.
Crude prices gain on bottom fishing after U.S. supply report
Crude oil futures rose on Wednesday after bargain hunters snapped up nicely-priced positions and erased losses stemming from bearish U.S. supply data and a diminishing likelihood of a U.S. attack on Syria.
Oil prices saw downward pressure earlier after U.S. President Barack Obama said his administration would support a Russian plan to seize Syria's chemical weapons and put military strikes on hold, which allayed fears that U.S. attacks would draw the broader Middle East into conflict and threaten global crude supply.
Elsewhere, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 219,000 barrels in the week ended Sept. 6, less than expectations for a decline of 1.5 million barrels.
Total U.S. crude oil inventories stood at 360.0 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 1.658 million barrels, confounding expectations for a decline of 1.25 million barrels, which sent crude prices to levels ripe for bottom fishing.
Investors turned their attention to next week's Federal Reserve monetary policy meeting that begins Tuesday, Sept. 17.
Doubts persist as to whether the Fed will announce plans to begin tapering its monthly USD85 billion asset-purchasing program.
Oil prices saw downward pressure earlier after U.S. President Barack Obama said his administration would support a Russian plan to seize Syria's chemical weapons and put military strikes on hold, which allayed fears that U.S. attacks would draw the broader Middle East into conflict and threaten global crude supply.
Elsewhere, the U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 219,000 barrels in the week ended Sept. 6, less than expectations for a decline of 1.5 million barrels.
Total U.S. crude oil inventories stood at 360.0 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 1.658 million barrels, confounding expectations for a decline of 1.25 million barrels, which sent crude prices to levels ripe for bottom fishing.
Investors turned their attention to next week's Federal Reserve monetary policy meeting that begins Tuesday, Sept. 17.
Doubts persist as to whether the Fed will announce plans to begin tapering its monthly USD85 billion asset-purchasing program.
Natural gas drops over fears of bearish supply report
Natural gas prices extended Tuesday's losses into Wednesday after investors braced for potentially bearish U.S. supply data to publish on Thursday.
Supply concerns sent prices falling despite weather forecasts calling for above-normal temperatures across much of the eastern half of the U.S.
The U.S. Energy Information Administration said most recently that natural gas stockpiles rose by 58 billion cubic feet in the week ending Aug. 30, more than an expected 54 billion increase after a 67 billion rise the previous week.
Market analysts expect this week's storage data to show an increase of 64 billion cubic feet.
The five-year average for the week is a build of 62 billion cubic feet.
Total U.S. natural gas storage stood at 3.188 trillion cubic feet as of last week, 1.4% above the five-year average and 6.2% below last year's unusually high level.
Supply concerns sent prices falling despite weather forecasts calling for above-normal temperatures across much of the eastern half of the U.S.
The U.S. Energy Information Administration said most recently that natural gas stockpiles rose by 58 billion cubic feet in the week ending Aug. 30, more than an expected 54 billion increase after a 67 billion rise the previous week.
Market analysts expect this week's storage data to show an increase of 64 billion cubic feet.
The five-year average for the week is a build of 62 billion cubic feet.
Total U.S. natural gas storage stood at 3.188 trillion cubic feet as of last week, 1.4% above the five-year average and 6.2% below last year's unusually high level.
Economic Events:
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
Thursday, September 12
| ||||
13:30
|
EUR
|
ECB Monthly Report
| ||
14:30
|
EUR
|
Industrial Production (MoM)
|
0.10%
|
0.70%
|
14:30
|
EUR
|
Industrial Production (YoY)
|
-0.10%
|
0.30%
|
15:05
|
GBP
|
10-Year Treasury Gilt Auction
|
2.58%
| |
17:10
|
EUR
|
ECB President Draghi Speaks
| ||
17:30
|
INR
|
Indian CPI (YoY)
|
9.60%
|
9.60%
|
17:30
|
INR
|
Indian Industrial Production (YoY)
|
-0.80%
|
-2.20%
|
17:30
|
INR
|
Indian Manufacturing Output (MoM)
|
-2.20%
| |
18:00
|
USD
|
Continuing Jobless Claims
|
2,960K
|
2,951K
|
18:00
|
USD
|
Import Price Index (MoM)
|
0.40%
|
0.20%
|
18:00
|
USD
|
Initial Jobless Claims
|
330K
|
323K
|
19:15
|
USD
|
Bloomberg Consumer Confidence
|
-32.3
| |
20:00
|
USD
|
Natural Gas Storage
|
66B
|
58B
|
22:30
|
USD
|
30-Year Bond Auction
|
3.65%
| |
23:30
|
USD
|
Federal Budget Balance
|
-150.0B
|
-97.6B
|
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