Gold’s modest fall takes it back below USD1,650
Gold futures declined slightly during Thursday’s Asian session, although the small retreat extended losses from the U.S. session and means bullion is once again languishing below the psychologically important USD1,650 per troy ounce level.
Gold futures were likely to test support USD1,639.65 a troy ounce, Tuesday's, and resistance at USD1,670.25, Monday's high.
Some decent developed world economic data points may be challenging gold’s safe-haven status in the near-term. On Wednesday. Euro zone idustrial production rose 0.7% in December, beating expectations for a 0.2% increase and well above November's 0.7% contraction.
Germany, the euro zone’s largest economy, said December industrial production rose 0.8% after falling for the four previous consecutive months, lifting risk appetite along the way.
Physical demand is still seen as slow though. The SPDR Gold Shares, the largest ETF backed by physical holdings of gold, said holdings fell to 1325.99 tons on Wednesday from 1326.89 tons on Tuesday.
Gold futures were likely to test support USD1,639.65 a troy ounce, Tuesday's, and resistance at USD1,670.25, Monday's high.
Some decent developed world economic data points may be challenging gold’s safe-haven status in the near-term. On Wednesday. Euro zone idustrial production rose 0.7% in December, beating expectations for a 0.2% increase and well above November's 0.7% contraction.
Germany, the euro zone’s largest economy, said December industrial production rose 0.8% after falling for the four previous consecutive months, lifting risk appetite along the way.
Physical demand is still seen as slow though. The SPDR Gold Shares, the largest ETF backed by physical holdings of gold, said holdings fell to 1325.99 tons on Wednesday from 1326.89 tons on Tuesday.
Oil rises in Asia following inventory data
Oil futures traded higher during Thursday’s Asian session following a round of mixed data points out of the U.S. on Wednesday.
On the New York Mercantile Exchange, light, sweet crude futures for March delivery added 0.18% to USD97.18 per barrel in Asian trading Thursday.
Crude finished slightly higher in the U.S. after sliding earlier in the session after the U.S. Energy Information Administration pared its demand outlook by 90,000 barrels per day for 2013. Additionally, EIA said that U.S. crude oil inventories rose by 560,000 barrels in the week ended Feb. 8, well below market calls for a gain of 2.35 million barrels. Total U.S. crude oil inventories stood at 372.2 million barrels as of last week.
On the New York Mercantile Exchange, light, sweet crude futures for March delivery added 0.18% to USD97.18 per barrel in Asian trading Thursday.
Crude finished slightly higher in the U.S. after sliding earlier in the session after the U.S. Energy Information Administration pared its demand outlook by 90,000 barrels per day for 2013. Additionally, EIA said that U.S. crude oil inventories rose by 560,000 barrels in the week ended Feb. 8, well below market calls for a gain of 2.35 million barrels. Total U.S. crude oil inventories stood at 372.2 million barrels as of last week.
Natural Gas shoots higher on forecasts for return of colder temps
Natural gas futures shot up in mid-afternoon trading on Wednesday after updated weather forecasts pointed to cooler-than-normal temperatures returning to a good portion of the U.S. by the end of February.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.317 per million British thermal units, up 2.68%.
The commodity hit a session low of USD3.231 and a high of USD3.321.
Updated weather forecast models released earlier called for below-normal readings to settle in for most of the nation from Feb. 16 to Feb. 20.
The U.S. National Weather Service’s six-to-ten-day outlook showed normal or below-normal temperatures for most of the nation.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season running from November through March sees peak demand for gas.
On the New York Mercantile Exchange, natural gas futures for delivery in March traded at USD3.317 per million British thermal units, up 2.68%.
The commodity hit a session low of USD3.231 and a high of USD3.321.
Updated weather forecast models released earlier called for below-normal readings to settle in for most of the nation from Feb. 16 to Feb. 20.
The U.S. National Weather Service’s six-to-ten-day outlook showed normal or below-normal temperatures for most of the nation.
Natural gas futures are very sensitive to weather reports in the U.S. winter.
The U.S. heating season running from November through March sees peak demand for gas.
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