Gold dips as dollar gains on Yellen nomination as Fed chair
Gold prices fell as the dollar rose on news President Barack Obama will name Federal Reserve Vice Chair Janet Yellen to replace Ben Bernanke as head of the U.S. central bank despite her dovish policy leanings that have weakened the greenback in recent years.
Gold futures were likely to find support at USD1,278.20 a troy ounce, the low from Oct. 2, and resistance at USD1,330.10, Tuesday's high.
U.S. President Barack Obama later today is due to announce his decision to name Janet Yellen as the new head of the Federal Reserve.
Yellen's nomination sparked relief buying for the dollar despite her being a noted policy dove seen as sticking with currently loose monetary policies, as she will likely win confirmation in the Senate and ensure a smooth transition of leadership in the U.S. central bank.
Gold futures were likely to find support at USD1,278.20 a troy ounce, the low from Oct. 2, and resistance at USD1,330.10, Tuesday's high.
U.S. President Barack Obama later today is due to announce his decision to name Janet Yellen as the new head of the Federal Reserve.
Yellen's nomination sparked relief buying for the dollar despite her being a noted policy dove seen as sticking with currently loose monetary policies, as she will likely win confirmation in the Senate and ensure a smooth transition of leadership in the U.S. central bank.
Crude prices take a nosedive on bearish supply report
Crude prices dropped on Wednesday after official U.S. data revealed that the country's supplies shot up way more than expected last week.
Oil futures were likely to find support at USD101.06 a barrel, the low from Sept. 30, and resistance at USD104.06 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.8 million barrels in the week ended Oct. 4, well above expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 370.5 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 149,000 barrels, below expectations for a gain of 1.3 million barrels.
The numbers sent prices falling on fears supplies are outstripping demand.
Oil futures were likely to find support at USD101.06 a barrel, the low from Sept. 30, and resistance at USD104.06 a barrel, Tuesday's high.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 6.8 million barrels in the week ended Oct. 4, well above expectations for an increase of 1.5 million barrels.
Total U.S. crude oil inventories stood at 370.5 million barrels as of last week.
The report also showed that total motor gasoline inventories increased by 149,000 barrels, below expectations for a gain of 1.3 million barrels.
The numbers sent prices falling on fears supplies are outstripping demand.
Natural gas prices fall as investors lock in profits and sell
Profit taking sent natural gas prices falling from three-week highs on Wednesday after investors locked in gains and sold on weather reports calling for above-normal temperatures across much of the U.S. through the middle of October.
Previous weather forecasts calling for seasonably mild temperatures reversed course and called for above-normal temperatures for a good portion of the central and eastern U.S. through Oct. 21, which sent natural gas prices hitting three-week highs on Tuesday.
Demand for natural gas tends to increase at the country's thermal power plants as temperatures rise, as homes and businesses throttle up on their air conditioners.
Profit-taking ended the rally on Wednesday, however, as seasonably mild temperatures will eventually return.
Natural gas prices tend to slump in the Northern Hemisphere's spring and fall, when mild temperatures cut into the need for air conditioning or heating.
Previous weather forecasts calling for seasonably mild temperatures reversed course and called for above-normal temperatures for a good portion of the central and eastern U.S. through Oct. 21, which sent natural gas prices hitting three-week highs on Tuesday.
Demand for natural gas tends to increase at the country's thermal power plants as temperatures rise, as homes and businesses throttle up on their air conditioners.
Profit-taking ended the rally on Wednesday, however, as seasonably mild temperatures will eventually return.
Natural gas prices tend to slump in the Northern Hemisphere's spring and fall, when mild temperatures cut into the need for air conditioning or heating.
Economic Events:
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
Thursday, October 10
| ||||
3:30
|
EUR
|
ECB President Draghi Speaks
| ||
13:30
|
EUR
|
ECB Monthly Report
| ||
16:30
|
GBP
|
BoE QE Total
|
375B
|
375B
|
16:30
|
GBP
|
Interest Rate Decision
|
0.50%
|
0.50%
|
18:00
|
USD
|
Continuing Jobless Claims
|
2,900K
|
2,925K
|
18:00
|
USD
|
Initial Jobless Claims
|
310K
|
308K
|
19:15
|
USD
|
FOMC Member Bullard Speaks
| ||
20:00
|
USD
|
Natural Gas Storage
|
94B
|
101B
|
21:50
|
EUR
|
ECB President Draghi Speaks
| ||
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