Holdings in the SPDR Gold Trust the biggest exchange traded fund backed by bullion increased 5.17 metric tons to 1 305.69 metric tons as of Sept.28. ENERGY Crude oil prices witnessed choppy trading yesterday and closed with meager losses.
Gold futures continued it s Bull Run and managed to climb to yet another all time high on the second trading day of the week. Gold hit $1310 as the US dollar slumped against its European counterpart and investment interest piled up next to the yellow metal. Prolonged talks by the American central bank about further monetary policy easing has given rise to safe haven buying gold which punted the prices towards fresh all time highs without fail. In addition US government data showed that the consumer confidence of the country declined this month following meek performance at the jobs front. Data also showed that the housing prices climbed at a slower pace during the month of July affirming the idea of an economic slowdown in the region. The Fed expressed its willingness to implement further monetary easing to spur economic growth in the region. Holdings in the SPDR Gold Trust the biggest exchange traded fund backed by bullion increased 5.17 metric tons to 1 305.69 metric tons as of Sept.28. ENERGY Crude oil prices witnessed choppy trading yesterday and closed with meager losses.
The market showed signs of weakness initially during the session following the weakness in the equity markets and weaker than expected economic data releases. However the weakness in the US dollar helped the counter to gain lost grounds. However the market remains to be oversupplied and the EIA is expected to show yet another increase in inventories. Analysts polled by Platts expect crude inventories to rise 2.2 million barrels for the week ended Sept. 24 while gasoline stockpiles add 800 000 barrels and distillates gain 400 000. However crude oil at MCX posted gains as the weakness in the Indian rupee against the US dollar offset the weakness in the counter. Natural gas futures rose Tuesday as market participants bet on an expected seasonal rally on the October contract s last trading day.
Meanwhile a cluster of storms in the northwest Caribbean Tuesday developed into a tropical depression the National Hurricane Center said. However The U.S. Energy Information Administration reported last week that inventories as of Sept. 17 were 6.2% above the five year average. BASEMETALS Base metals prices were trading with losses initially during the day as expectations of further economic weakness in US the second largest consumer of the consumer of the metal failed to attract buying interest. However falling US dollar against the major currencies rendered the commodities cheaper resulting in fresh buying in the counters. Firm fundamental of the red metal copper has also helped the base metals to recover from intraday lows. Copper has surged more than 30% from June s lows lifted by improving industrial demand and concerns about global supply. The most actively traded copper futures contract for December delivery settled up 1.1% or 4 cents at $3.6370 a pound on the Comex division of the New York Mercantile Exchange the highest settlement price since July 2008.
