Google translate to Tieng Viet, Khmer or chinese

Thursday 27 March 2014

Gold and Silver Slip Further While Crude Oil Cracks $100 Handle

Talking Points

  • WTI open to further gains on positive US data in session ahead
  • Gold and silver remain vulnerable to ebbing safe-haven demand
  • Copper bears cap the base metal’s gains at critical $3.00 handle

Crude oil has broken above the psychologically-significant $100 handle following some positive US economic data overnight, leaving the door open to further gains on an upside surprise to upcoming US revised GDP figures. Meanwhile, goldmay be vulnerable to further declines following a brief dip below the $1,300 mark overnight as ebbing geopolitical risks sap safe-haven demand for the precious metals.

Crude Cracks $100
Crude oil came out of the gates to a strong start in US trading overnight and continued to edge higher following a better-than-anticipated US Durable Goods Orders reading. Despite a soft inventories report from the DOE and a dip in US equities, the bulls managed to hold onto control of price direction to push the WTI contract above the $100 per barrel mark.

Positive US economic data generally bodes well for the WTI contract given the commodity’s growth-sensitive standing. Thus there is the potential for continued gains for crude oil if upcoming US revised GDP figures and initial jobless claimsdata offer upside surprises.

Gold and Silver Slip Further
Following a brief respite in Asian trading yesterday the precious metals resumed their declines during the US session. Curiously, the falls occurred alongside a weaker greenback which suggests that ebbing safe-haven demand for the commodities was the likely driver, rather than broad US dollar strength. Gold and silver have suffered as easinggeopolitical tensions in Eastern Europe cause traders to unwind fear-driven positions in the precious metals. A further abating of concerns in the region would likely continue to weigh on the gold price and prompt another dip below the $1,300 handle.

No comments:

Post a Comment