Gold continues to fall as U.S. data lifts riskier assets
Gold’s safe-haven status worked against it during Tuesday’s U.S. session and that theme carried over to Asian trade Wednesday as the yellow metal traded slightly lower following some strong U.S. data points.
Gold futures were likely to find support at USD1,268.75 a troy ounce, Friday's low, and resistance at USD1,300.55, Monday's high.
Well last week’s comments from Federal Reserve Chairman Ben Bernanke about possible tapering of the central bank’s USD85 billion-a-month asset-buying program continue to loom large in the commodities pits, it was a solid batch of U.S. data points that pressured gold somewhat on Tuesday.
In U.S. economic news out Tuesday, the S&P/Case-Shiller Index of home prices in 20 U.S. metro areas rose 12.1% in April. The 10-city index gained 11.6%. All 20 cities were positive for the fourth straight month. Atlanta, Dallas, Detroit and Minneapolis had the largest year-over-year gains.
The Commerce Department said new home sales rose 2.1% to a seasonally adjusted annual rate of 476,000 units – the highest level in nearly five years. expected new home sales to rise to a 462,000-unit rate in May. Sales surged 29% year-over-year.
U.S. consumer confidence rose to 81.4 in June, easily beating the reading of 75 economists expected. The May reading was 74.3.
Crude oil gains on improving U.S. economic indicators
Gold futures were likely to find support at USD1,268.75 a troy ounce, Friday's low, and resistance at USD1,300.55, Monday's high.
Well last week’s comments from Federal Reserve Chairman Ben Bernanke about possible tapering of the central bank’s USD85 billion-a-month asset-buying program continue to loom large in the commodities pits, it was a solid batch of U.S. data points that pressured gold somewhat on Tuesday.
In U.S. economic news out Tuesday, the S&P/Case-Shiller Index of home prices in 20 U.S. metro areas rose 12.1% in April. The 10-city index gained 11.6%. All 20 cities were positive for the fourth straight month. Atlanta, Dallas, Detroit and Minneapolis had the largest year-over-year gains.
The Commerce Department said new home sales rose 2.1% to a seasonally adjusted annual rate of 476,000 units – the highest level in nearly five years. expected new home sales to rise to a 462,000-unit rate in May. Sales surged 29% year-over-year.
U.S. consumer confidence rose to 81.4 in June, easily beating the reading of 75 economists expected. The May reading was 74.3.
Crude oil gains on improving U.S. economic indicators
Crude prices rose on Tuesday after better-than-expected U.S. economic indicators hit the wire and pointed to an improving economy that will demand more fuels and energy going forward.
Data released earlier revealed that U.S. consumer confidence rose to its highest level since January 2008 this month.
The Conference Board said its index of U.S. consumer confidence rose to 81.4 from 74.3 in May, well above expectations for a reading of 75.4.
In a separate report, the Commerce Department said U.S. orders for durable goods rose 3.6% in May, outstripping expectations for a 3.0% gain.
Positive data from the housing market sent oil prices rising as well.
The Commerce Department said U.S. new home sales rose by 2.1% to 476,000 units in May, the highest level since July 2008 and well above expectations for an increase of 1.3% to 462,000.
Home prices are on the rise as well.
The Standard & Poor's/Case-Shiller 20-city house price index rose 12.1% in April from a year earlier, above expectations for a 10.6% increase.
U.S. home prices in March rose by 10.9%.
Data released earlier revealed that U.S. consumer confidence rose to its highest level since January 2008 this month.
The Conference Board said its index of U.S. consumer confidence rose to 81.4 from 74.3 in May, well above expectations for a reading of 75.4.
In a separate report, the Commerce Department said U.S. orders for durable goods rose 3.6% in May, outstripping expectations for a 3.0% gain.
Positive data from the housing market sent oil prices rising as well.
The Commerce Department said U.S. new home sales rose by 2.1% to 476,000 units in May, the highest level since July 2008 and well above expectations for an increase of 1.3% to 462,000.
Home prices are on the rise as well.
The Standard & Poor's/Case-Shiller 20-city house price index rose 12.1% in April from a year earlier, above expectations for a 10.6% increase.
U.S. home prices in March rose by 10.9%.
Natural gas drops as weather forecasts point to cooler U.S. temperatures
Natural gas prices fell on Tuesday after weather forecasting models predicted below-normal temperatures to arrive in the eastern half of the U.S. in the coming days.
Weather forecasting models called for below-normal temperatures to settle in for portions of the heavily populated northeastern U.S. over the next two weeks.
Industry weather group MDA Weather Services said it expected near normal or below-normal temperatures to spread across the eastern half of the nation during the next six-to-15-days.
Mild summer temperatures cut into the need for gas-fired electricity to cool homes and dampen demand for natural gas.
Prices continued to hover lower after the U.S. Energy Information Administration said in its weekly report late last week that natural gas storage in the U.S. in the week ended June 14 rose by 91 billion cubic feet, above market expectations for an increase of 90 billion.
Total U.S. natural gas storage stood 2.438 trillion cubic feet as of last week, 1.9% below the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 75 billion cubic feet to 95 billion cubic feet, compared to a 58 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 79 billion cubic feet.
Weather forecasting models called for below-normal temperatures to settle in for portions of the heavily populated northeastern U.S. over the next two weeks.
Industry weather group MDA Weather Services said it expected near normal or below-normal temperatures to spread across the eastern half of the nation during the next six-to-15-days.
Mild summer temperatures cut into the need for gas-fired electricity to cool homes and dampen demand for natural gas.
Prices continued to hover lower after the U.S. Energy Information Administration said in its weekly report late last week that natural gas storage in the U.S. in the week ended June 14 rose by 91 billion cubic feet, above market expectations for an increase of 90 billion.
Total U.S. natural gas storage stood 2.438 trillion cubic feet as of last week, 1.9% below the five-year average for this time of year.
Early injection estimates for this week’s storage data range from 75 billion cubic feet to 95 billion cubic feet, compared to a 58 billion cubic feet increase during the same week a year earlier.
The five-year average for the week is a build of 79 billion cubic feet.
Economic Events for the Day
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
2:30
|
USD
|
Treasury Secretary Lew Speaks
| ||
15:00
|
GBP
|
BoE Gov King Speaks
| ||
16:30
|
USD
|
MBA Mortgage Applications (WoW)
|
-3.30%
| |
17:00
|
INR
|
Indian M3 Money Supply
|
12.10%
| |
18:00
|
USD
|
GDP (QoQ)
|
2.40%
|
2.40%
|
18:00
|
USD
|
GDP Price Index (QoQ)
|
1.10%
|
1.20%
|
20:00
|
USD
|
Crude Oil Inventories
|
-1.690M
|
0.313M
|
20:00
|
USD
|
EIA Weekly Distillates Stocks
|
0.600M
|
-0.489M
|
20:00
|
USD
|
Gasoline Inventories
|
0.855M
|
0.183M
|
22:30
|
USD
|
5-Year Note Auction
|
1.05%
| |
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