Gold rallies after Summers Withdraws from Fed consideration
Gold futures soared in the early part of Monday’s session on news that former U.S. Treasury Secretary Larry Summers has withdrawn from consideration to be the next chairman of the Federal Reserve.
Last week, gold futures slid 4.7% in the worst weekly loss since June as traders sold the yellow metal in anticipation that the Fed will make an official announcement of tapering to its USD85 billion-per-month quantitative easing program when it concludes a two-day meeting on Thursday Sept. 18.
Gold got some relief Friday after after the Commerce Department said U.S. retail sales rose 0.2% in in August, below expectations for a 0.4% increase.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
Gold rallied in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware he would have difficulty being confirmed by the Senate even if nominated.
Last week, gold futures slid 4.7% in the worst weekly loss since June as traders sold the yellow metal in anticipation that the Fed will make an official announcement of tapering to its USD85 billion-per-month quantitative easing program when it concludes a two-day meeting on Thursday Sept. 18.
Gold got some relief Friday after after the Commerce Department said U.S. retail sales rose 0.2% in in August, below expectations for a 0.4% increase.
A separate report showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to a five month low of 76.8, from a final reading of 82.1 in August.
Gold rallied in Asia Monday after various U.S. media agencies reported Summers informed President Barack Obama that he no longer wants to be considered for the Fed’s top post. There is speculation that Summers was aware he would have difficulty being confirmed by the Senate even if nominated.
Crude prices fall as Syria fears wane, U.S. data disappoint
Crude oil futures fell on Friday as fears the U.S. may launch military strikes against Syria began to fade as the possibility of a diplomatic solution to the impasse rose, while soft U.S. consumer sentiment numbers pushed down prices as well.
U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov held a fresh round of talks on Friday to discuss ways to disarm Syria of its chemical weapons, and while the U.S. says military action is still possible, energy markets concluded such campaigns are less likely.
Syria has agreed to hand over its chemical weapons cache to international control at Russia's request.
Oil prices have shot up during the crisis amid fears a U.S. strike on Syria will engulf the oil-rich Middle East and threaten global supply.
U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov held a fresh round of talks on Friday to discuss ways to disarm Syria of its chemical weapons, and while the U.S. says military action is still possible, energy markets concluded such campaigns are less likely.
Syria has agreed to hand over its chemical weapons cache to international control at Russia's request.
Oil prices have shot up during the crisis amid fears a U.S. strike on Syria will engulf the oil-rich Middle East and threaten global supply.
Natural gas extends gains on bullish U.S. supply data
Natural gas prices extended Thursday's gains into Friday after official U.S. inventory data revealed the country's stockpiles rose less than expected last week.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended Sept. 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.
Investors also kept a wary eye Tropical Storm Ingrid, which formed in the southwestern Gulf of Mexico though it was poised to make landfall in Mexico.
The U.S. Energy Information Administration said in its weekly report on Thursday that natural gas storage in the U.S. in the week ended Sept. 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.
Investors also kept a wary eye Tropical Storm Ingrid, which formed in the southwestern Gulf of Mexico though it was poised to make landfall in Mexico.
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
12:00
|
INR
|
Indian WPI (YoY)
|
5.80%
|
5.79%
|
13:30
|
EUR
|
ECB President Draghi Speaks
| ||
14:30
|
EUR
|
Core CPI (YoY)
|
1.10%
|
1.10%
|
14:30
|
EUR
|
CPI (YoY)
|
1.30%
|
1.30%
|
14:30
|
EUR
|
CPI (MoM)
|
0.10%
|
-0.50%
|
14:30
|
EUR
|
Labor Cost Index (YoY)
|
1.60%
| |
18:00
|
USD
|
NY Empire State Manufacturing Index
|
9.2
|
8.24
|
18:45
|
USD
|
Capacity Utilization Rate
|
77.80%
|
77.60%
|
18:45
|
USD
|
Industrial Production (MoM)
|
0.40%
|
0.00%
|
21:00
|
USD
|
3-Month Bill Auction
|
0.02%
| |
21:00
|
USD
|
6-Month Bill Auction
|
0.04%
| |
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