Gold prices dip in Asia with markets in major buyer China closed

Gold prices dip in Asia with markets in major buyer China closed

Gold prices eased slightly in Asia on Monday on renewed concerns about the pace of U.S. economic recovery and with markets in major gold buyer China closed for a public holiday. On the Comex division of the New York Mercantile Exchange, gold for June delivery traded at $1,302.30 a troy ounce, down 0.09%, after it ended Friday’s session with a gain of 1.47%, or $18.90, to settle at $1,303.50 an ounce.

Last week, gold futures rallied more than 1% to end at a one-week high, after weaker than expected U.S. nonfarm payrolls data sparked speculation that the Federal Reserve could start to slow the tapering of its bond purchases. The Labor Department reported Friday that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000. February’s figure was revised up to 197,000 from a previously reported 175,000. The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a tick down to 6.6%. The data disappointed some market expectations for a more robust reading but indicated that the Federal Reserve is likely to stick to the current pace of reductions to its asset purchase program. Gold has been under heavy selling pressure in recent weeks as upbeat U.S. economic data underlined expectations that the Federal Reserve will begin to raise rates sooner than previously thought.

In the week ahead, market players will be focusing on Wednesday’s minutes of the Fed’s most recent policy setting meeting for further clues on the future course of monetary policy. Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers decreased their bullish bets in gold futures in the week ending April 1. Net longs totaled 106,354 contracts, down 11.4% from net longs of 120,042 in the preceding week. Elsewhere on the Comex, silver for May delivery fell 0.35% to $19.877 a troy ounce. Data from the CFTC showed that net silver longs declined to 5,582 contracts as of last week, down 24.9% from net longs of 7,442 in the preceding week.

 

NYMEX crude oil slightly weaker in Asian trade, China markets closed

Crude oil prices eased in Asia early Monday on renewed concerns about the pace of U.S. economic recovery. On the New York Mercantile Exchange, light sweet Crude Oil for delivery in May traded at $101.00 a barrel, down 0.14%, after it ended on Friday’s session up 0.85%, or 85 cents, to settle at $101.14 a barrel. In China, markets are closed for a public holiday. Last week's gains came after the latest U.S. employment report underlined the view that the economy was regaining strength after a setback caused by bad weather. The Labor Department reported Friday that the U.S. economy added 192,000 jobs in March, below expectations for jobs growth of 200,000. February’s figure was revised up to 197,000 from a previously reported 175,000. The U.S. unemployment rate remained unchanged at 6.7%, compared to expectations for a tick down to 6.6%. The jobs report disappointed some market expectations for a more robust reading but indicated that the slowdown in economic activity seen at the start of the year was temporary. Oil drew additional support from hopes that China will implement economic stimulus measures in the near-term to shore up slowing growth. The U.S. and China are the world’s two largest oil consuming nations In the week ahead, market players will be focusing on Wednesday’s minutes of the Fed’s most recent policy setting meeting for further clues on the future course of monetary policy. Oil traders are also looking ahead to monthly reports from the International Energy Agency and the Organization of the Petroleum Exporting Countries due later in the week, which will indicate expectations of supply and demand in the global market.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in New York-traded oil futures in the week ending April 1. Net longs totaled 300,921 contracts, up 2.49% from net longs of 293,403 in the preceding week.

 

Natural gas futures edged lower

U.S. natural gas futures edged lower on Friday, after updated long-term weather-forecasting models called for milder temperatures across most parts of the U.S.

On the New York Mercantile Exchange, natural gas for delivery in May lost 0.69%, or 3.1 cents, to settle at $4.439 per million British thermal units by close of trade on Friday. Natural gas fell to an 11-week low of $4.221 per million British thermal units on April 2. Futures were likely to find support at $4.221 per million British thermal units, the low from April 2 and resistance at $4.483, the high from April 3.

On the week, Nymex natural gas prices slumped 1.02%, or 4.6 cents amid concerns that the arrival of spring will bring warmer temperatures throughout the U.S. and cut into demand for heating. Updated long-term weather forecasts called for gradual warm-up over the Mid-Continent during the next 15 days, likely reducing demand for the fuel. Spring and fall see the weakest demand for natural gas in the U.S, as the absence of extreme temperatures curbs demand for heating and air conditioning.

The heating season from November through March is the peak demand period for U.S. gas consumption. Approximately 52% of U.S. households use natural gas for heating, according to the Energy Department. Natural gas rallied 2.4% on Thursday after weekly supply data showed that natural gas storage in the U.S. fell by 74 billion cubic feet, much higher than the five-year average drop of 8 billion cubic feet for this time of year. Total U.S. natural gas storage stood at 822 billion cubic feet, the lowest for this time of year since 2003. Utilities withdrew a record 3.012 trillion cubic feet of gas from storage since the start of the heating season in November. Many analysts expect this to be the last weekly withdrawal as the winter heating season draws to a close.

 

 

Economic Calendar

Time	Cur.	Imp.	Event	Actual	Forecast	Previous
Monday, April 7
All Day		Holiday	China - Tomb Sweeping Day
2:00	EUR		German Industrial Production (MoM)		0.30%	0.80%
3:00	EUR		Spanish Industrial Production (YoY)		1.70%	1.10%
3:15	CHF		Swiss CPI (MoM)		0.20%	0.10%
3:15	CHF		Swiss CPI (YoY)		-0.10%	-0.10%
4:00	NOK		Norway Manufacturing Production (MoM)		0.30%	-0.40%
4:30	EUR		Sentix Investor Confidence		14.2	13.9
5:00	SGD		Singaporean Foreign Reserves USD (MoM)			274.00B
10:00	USD		CB Employment Trends Index			116.4
15:00	USD		Consumer Credit		14.09B	13.70B
18:00	NZD		NZIER Business Confidence			52
19:50	JPY		Current Account n.s.a.		0.628T	-1.589T
21:30	AUD		NAB Business Confidence			7
21:30	AUD		NAB Business Survey