TOPIC: Gold Declines in New York Before Fed Meeting as Do
Gold Declines in New York Before Fed Meeting as Do 1 year, 1 month ago #57
Gold Declines in New York Before Fed Meeting as Dollar Advances
2012-03-13 13:30:18.333 GMT
By Maria Kolesnikova
March 13 (Bloomberg) -- Gold may fall in New York before a Federal Open Market Committee meeting and as Greece prepares to receive a second bailout. Platinum rose above gold for a second day.
The best six months of job gains since 2006 have helped reduce the odds of a third round of asset purchases by the U.S.
Federal Reserve, according to a Bloomberg News survey. Bullion had the biggest one-day decline since 2008 on Feb. 29 after Fed Chairman Ben S. Bernanke gave no signal of a third round of quantitative easing, or QE3, sending the dollar higher. The dollar gained today against a six-currency basket including the euro and yen.
“The FOMC will be important, after the market interpreted Bernanke’s recent silence on QE3 as an indication that it was unlikely to happen,” said Nic Brown, an analyst at Natixis Commodity Markets Ltd. in London. “The gold market will be hanging on his every word tonight.”
Gold futures for April delivery were down 0.8 percent at
$1,686.70 an ounce by 9:15 a.m. on the Comex in New York. Gold for immediate delivery fell 0.9 percent to $1,686.23 an ounce.
Euro-area finance ministers yesterday signed off on a second Greek bailout and will give formal approval tomorrow, a day before the International Monetary Fund board votes on its contribution.
The FOMC plans to release a statement at about 2:15 p.m.
in Washington after its meeting on rates. The U.S. dollar strengthened as much as 0.3 percent against the euro and as much as 0.1 percent against the six-currency basket. Gold typically moves inversely to the greenback.
“Investors continue to watch the dollar rate, waiting on the sidelines while many are concerned about an even stronger dollar rebound,” Andrey Kryuchenkov, a London-based analyst at VTB Capital, wrote in a report today.
Gold assets in exchange-traded products rose to a record
2,408.981 metric tons yesterday, and are up 2.2 percent this year, according to data compiled by Bloomberg. Holdings in exchange-traded products backed by platinum climbed 8.2 percent this year, compared with a 2.8 percent gain in silver ETPs.
Platinum prices climbed above gold for the first time since September yesterday on concern that production in South Africa is declining amid improving global auto sales. One ounce of platinum bought as much as 1.0032 ounces of gold today, the most since Sept. 19, according to data compiled by Bloomberg. The ratio was last at 1.0002.
Platinum for April was little-changed at $1,696.20 an ounce. The price has gained 21 percent this year and has tied with silver as the best-performing precious metal.
Silver for May delivery was up 0.5 percent at $33.565 an ounce. Palladium for June delivery was down 0.5 percent at
$700.70 an ounce.
For Related News and Information:
Top commodity reports: CTOP <GO>
Top metal and mining stories: METT <GO>
--With assistance from Glenys Sim in Singapore. Editor: John Deane
Re: Gold Declines in New York Before Fed Meeting as Do 1 year, 1 month ago #58
Crude Rises as U.S. Retail Sales Increase Most in Five Months
2012-03-13 19:55:02.912 GMT
By Moming Zhou
March 13 (Bloomberg) -- Oil rose after U.S. retail sales increased by the most in five months and equities gained, signaling economic growth and higher demand.
Prices advanced 0.4 percent as retail sales rose 1.1 percent in February, the Commerce Department said. The Dow Jones Industrial Average reached the highest level in four years. Oil pared gains as the dollar strengthened against the euro after the Federal Reserve raised its assessment of the economy and refrained from new actions to lower borrowing costs.
“Prices were higher as we had some positive economic data,” said Jason Schenker, president of Prestige Economics LLC, an Austin, Texas-based energy consultant. “The Fed is saying that there will be no additional stimulus.”
Oil for April delivery rose 37 cents to settle at $106.71 a barrel on the New York Mercantile Exchange. The price ranged from $105.67 to $107.35. The futures are up 8 percent this year.
Brent crude for April settlement on the London-based ICE Futures Europe exchange gained 88 cents, or 0.7 percent, to
$126.22 a barrel, the highest settlement price in 11 months.
The retail sales increase matched the median forecast of 81 economists surveyed by Bloomberg News and followed a January gain of 0.6 percent that was larger than previously estimated.
Sales rose 1.6 percent at automobile dealers, reversing a 1.6 percent decrease the prior month. Demand improved in 11 of 13 industry categories.
“Retail sales definitely are having a bullish impact on the market,” said Phil Streible, a Chicago-based commodities broker at RJO Futures.
Cars last month sold at the fastest pace in four years, led by Chrysler Group LLC and a surprise gain from General Motors Co. Light-vehicle sales accelerated to a 15 million annual rate, the strongest since February 2008, according to Ward’s Automotive Group.
The Standard & Poor’s 500 Index advanced for the fifth straight day, climbing 1.5 percent at 3:33 p.m. The index is up
11 percent in 2012.
Prices also gained after data showed German investor confidence jumped to a 21-month high. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations advanced to 22.3 from 5.4 in February.
The index, which is designed to predict economic developments six months in advance, increased for the fourth straight month. It reached the highest reading since June 2010.
Economists forecast a gain to 10, according to the median of 36 estimates in a Bloomberg News survey.
“The market pushed high on German confidence and retail sales, rekindling the rally to $110,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut.
“The economic data is boosting expectations for higher demand.”
Crude fell back as the dollar strengthened after the Fed released its statement at around 2:15 p.m.
Inflation “has been subdued in recent months although prices of crude oil and gasoline have increased lately,” the Federal Open Market Committee said in a statement at the conclusion of a meeting today in Washington. The increase in oil will “push up inflation temporarily, but the committee anticipates that subsequently inflation will run at or below the rate that it judges most consistent with its dual mandate.”
The dollar increased its gain against the euro to 0.7 percent after the Fed’s statement from 0.4 percent before. The dollar strengthened as much as 0.8 percent in early trading, helping push oil down. A stronger dollar and weaker euro reduce oil’s appeal as an investment alternative.
“We are moving with the dollar and equities again,” said Rich Ilczyszyn, chief market strategist and founder of Iitrader.com in Chicago.
Crude prices are too high, three oil ministers said at the International Energy Forum yesterday in Kuwait. Mohamed Al-Hamli of the United Arab Emirates, Mohammed Al-Rumhy of Oman and Jose Maria Botelho de Vasconcelos of Angola all said prices should be lower. The Angolan minister said he’d prefer to see Brent at
$110 to $115 a barrel.
U.S. gasoline inventories probably fell 1 million barrels last week, according to the median estimate of nine analysts surveyed by Bloomberg News before an Energy Department report tomorrow. Distillate supplies, including diesel and heating oil, probably dropped 1.5 million barrels and crude stockpiles rose
1.6 million, the survey showed.
The industry-funded American Petroleum Institute will release its own stockpile data in Washington today.
Electronic trading volume on the Nymex was 582,615 contracts as of 3:32 p.m. in New York. Volume totaled 525,361 contracts yesterday, 16 percent below the three-month average.
Open interest was 1.58 million contracts.
For Related News and Information:
Top energy, oil stories: ETOP <GO> and OTOP <GO> News on oil inventories: TNI OIL INV <GO> News on oil markets: NI OILMARKET <GO> News on OPEC: NI OPEC <GO> Global energy statistics: ENST OLD <GO> Oil markets menu: OIL <GO>
--With assistance from Grant Smith in London, Joshua Zumbrun and Shobhana Chandra in Washington and Gabi Thesing in London.
Editors: Richard Stubbe, Dan Stets
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