Gold drops as solid U.S. indicators spark demand for U.S. dollar
Gold prices took a dive on Thursday after advancing U.S. service-sector and labor-market reports sent investors snapping up greenback positions on expectations that the Federal Reserve remains on course to taper stimulus programs this month.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,371.40 during U.S. afternoon hours, down 1.34%.
Gold prices hit a session low of USD1,365.00 a troy ounce and high of USD1,399.40 a troy ounce.
Gold futures were likely to find support at USD1,351.90 a troy ounce, the low from Aug. 20, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.56% at USD1,390.00 a troy ounce on Wednesday.
The Institute of Supply Management reported earlier that its U.S. non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for the dollar as well, which came at gold's expense.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline following an upwardly revised 1.6% rise the previous month.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,371.40 during U.S. afternoon hours, down 1.34%.
Gold prices hit a session low of USD1,365.00 a troy ounce and high of USD1,399.40 a troy ounce.
Gold futures were likely to find support at USD1,351.90 a troy ounce, the low from Aug. 20, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.56% at USD1,390.00 a troy ounce on Wednesday.
The Institute of Supply Management reported earlier that its U.S. non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for the dollar as well, which came at gold's expense.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline following an upwardly revised 1.6% rise the previous month.
Crude prices gain on advancing U.S. labor, service-sector reports
Crude oil futures posted solid gains on Thursday after better-than-expected economic indicators out of the U.S. labor and service-sector markets painted a picture of a more robust U.S. economy that will demand more fuel and energy going forward.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD108.05 a barrel during U.S. trading, up 0.76%.
The October contract settled down 1.21% at USD107.23 a barrel on Wednesday.
The commodity hit a session low of USD107.15 and a high of USD108.52.
The Institute of Supply Management reported earlier that its non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for oil as well.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD108.05 a barrel during U.S. trading, up 0.76%.
The October contract settled down 1.21% at USD107.23 a barrel on Wednesday.
The commodity hit a session low of USD107.15 and a high of USD108.52.
The Institute of Supply Management reported earlier that its non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for oil as well.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
Natural gas prices drop as U.S. stockpiles make unexpected gain
Natural gas prices dropped on Thursday after official U.S. data revealed the nation's inventories rose more than expected last week.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.611 per million British thermal units during U.S. trading, down 1.97%. The October contract settled up 0.46% at USD3.683 per million British thermal units on Wednesday.
The commodity hit a session low of USD3.597 and a high of USD3.718.
The U.S. Energy Information Administration said in its weekly report that natural gas stockpiles rose by 58 billion cubic feet in the week ending Aug. 30, more than an expected 54 billion increase after a 67 billion rise the previous week.
Prices fell on the news though increasingly active Atlantic hurricane activity curbed losses.
The U.S. National Hurricane Center said Wednesday that Tropical Storm Gabrielle has formed south of Puerto Rico, resulting in storm warnings that were discontinued on Thursday after the system weakened into a Tropical Depression.
The fate of the storm and other weather systems showing potential for development, especially one in the southern Gulf of Mexico, remained up in the air and bolstered prices somewhat.
Tropical weather systems often disrupt production by prompting gas rig operators to evacuate offshore facilities.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at USD3.611 per million British thermal units during U.S. trading, down 1.97%. The October contract settled up 0.46% at USD3.683 per million British thermal units on Wednesday.
The commodity hit a session low of USD3.597 and a high of USD3.718.
The U.S. Energy Information Administration said in its weekly report that natural gas stockpiles rose by 58 billion cubic feet in the week ending Aug. 30, more than an expected 54 billion increase after a 67 billion rise the previous week.
Prices fell on the news though increasingly active Atlantic hurricane activity curbed losses.
The U.S. National Hurricane Center said Wednesday that Tropical Storm Gabrielle has formed south of Puerto Rico, resulting in storm warnings that were discontinued on Thursday after the system weakened into a Tropical Depression.
The fate of the storm and other weather systems showing potential for development, especially one in the southern Gulf of Mexico, remained up in the air and bolstered prices somewhat.
Tropical weather systems often disrupt production by prompting gas rig operators to evacuate offshore facilities.
Economic Events:
Time
|
Cur.
|
Event
|
Forecast
|
Previous
|
12:30
|
GBP
|
Halifax House Price Index (MoM)
|
0.70%
|
0.90%
|
12:30
|
GBP
|
Halifax House Price Index (YoY)
|
5.60%
|
4.60%
|
14:00
|
GBP
|
Industrial Production (YoY)
|
-1.70%
|
1.20%
|
14:00
|
GBP
|
Industrial Production (MoM)
|
0.10%
|
1.10%
|
14:00
|
GBP
|
Inflation Expectations
|
3.60%
| |
14:00
|
GBP
|
Manufacturing Production (YoY)
|
-0.80%
|
2.00%
|
14:00
|
GBP
|
Manufacturing Production (MoM)
|
0.30%
|
1.90%
|
14:00
|
GBP
|
Trade Balance
|
-8.15B
|
-8.08B
|
17:30
|
USD
|
Chicago Fed President Evans Speaks
| ||
18:00
|
USD
|
Average Hourly Earnings (MoM)
|
0.20%
|
-0.10%
|
18:00
|
USD
|
Average Weekly Hours
|
34.5
|
34.4
|
18:00
|
USD
|
Nonfarm Payrolls
|
180K
|
162K
|
18:00
|
USD
|
Private Nonfarm Payrolls
|
180K
|
161K
|
18:00
|
USD
|
Unemployment Rate
|
7.40%
|
7.40%
|
19:30
|
GBP
|
NIESR GDP Estimate
|
0.70%
| |
20:00
|
USD
|
ECRI Weekly Annualized (WoW)
|
4.20%
| |
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