Gold Daily Fundamental Analysis As we expected earlier, gold declined on Wednesday on a short relief following the gains on the back of the dollar’s gains. Gold declined on Wednesday pressured by the stronger dollar and some profit taking after the metal rose near its highest in a month. The market is still jittered and mixed over the outlook for commodities, the dollar, and the debt crisis and all are reflecting the volatility on the precious metal. The overall outlook for gold remains positive and a slight relief is what is seen for now. The dollar regained grounds and the euro weakened on renewed haven demand with the worsening outlook for the global recovery and the prevailing debt crisis. Late Tuesday Bernanke confirmed the fragile state of the U.S. recovery and held the pledge for the loose monetary policy to support growth which he described as “frustratingly slow”. The absence of clear comments for the third round of quantitative easing is what supported the dollar and further on haven demand as the euro lost some of its appeal. The euro’s rally lost momentum on Wednesday with investors focusing on comments from German Finance Ministers, Wolfgang Schaeuble, where he sees that investors should play a significant role in the next bailout for Greece and suggests extending the maturities of Greek debt by seven years, where this swap will be considered a default by rating agencies opposed to the voluntary rollover supported by the EU and the ECB. On Thursday, the focus will remain on the jitters and central banks with the BoE and ECB rate decision, alongside the dollar’s performance. The focus is on Trichet and will be the main focus for the market, the signal for a July rate hike will be support for gold on inflation and the absence will also be support for gold on negative real return and that is stronger for gold right now. Nevertheless, unless the market finds real support and a trigger for gold the demand will continue towards the dollar and likely pressure the metal to extend the decline, yet all in all the odds are still bullish on the metal for now awaiting the final verdict from Trichet. Natural Gas Daily Fundamental Analysis Natural gas prices rose on Wednesday after the National Hurricane Center downgraded the threat of thunderstorms in the Caribbean Sea, which could have turned into a tropical cyclone and could have affected output from refineries in the Gulf of Mexico, moreover, warmer than average weather conditions continued to boost speculations of rising demand for power-plant fuel, which supported natural gas prices. Investors will be focused on the EIA report for natural gas inventories on Thursday, where the report is expected to show inventories rose last week by 77 billion cubic feet, while based on weather forecasts, we should expect natural gas prices to extend the rally over the upcoming period. Thursday June 09: At 14:30 GMT, The EIA will release the weekly natural gas storage change for the week ending June 03, where the prior report showed that natural gas inventories increased by 83 billion cubic feet, and Thursday’s report is expected to show natural gas stockpiles increased by 77 BCF. Crude Oil Daily Fundamental Analysis Crude oil prices rose above $100 a barrel on Wednesday after OPEC members failed to reach an agreement to raise output, and decided to discuss the matter again three months from now, while the EIA report showed crude oil inventories decreased by 4.8 million barrels, worse than expectations of a drop by 1.4 million barrels, and thus, crude oil prices paced to the upside and breached the psychological barrier at $100. We still preserve our bearish outlook for crude oil prices, as slowing economic activities around the globe and especially in the United States should keep crude oil prices under pressure, thus we continue to believe crude oil prices will fluctuate among a narrow range with a downside tendency. Thursday June 09: At 12:30 GMT, U.S economy will issue its weekly initial claims for the week ending June 4, where the number of people filing for first-time claims for the state unemployment is expected to ease to 419,000 after they reached 422 thousand in the prior week. At 12:30 GMT, Canada will release the international merchandise trade balance for the month of April, where the trade balance showed a surplus in March by 0.6 billion Canadian dollars. At 12:30 GMT, the U.S. will release the trade balance for the month of April, where the trade deficit is expected to widen to $48.8 billion, compared with the prior deficit of $48.2 billion in March

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