Brent below $100 for first time in a year; Gold holds above $1260 . . . . . . . . . . . . . . . . The commodity sentiment was still stirred by the weak jobs growth in the US, prompting traders to weigh back speculations the Federal Reserve will hike interest rates sooner than expected. The much lower-than-expected nonfarm payroll growth of 142 thousand in August is having little effect on expectations for the timing of the Fed`s initial rate increase, which is still seen in the middle of the next year. However, the stocks seemed to get a lift from the report, holding the Dow and S&P near record highs while commodities resume a choppy trade on Monday. Oil futures were weighed again by the strength of the dollar amid mixed trade data from China, the world`s top consumer. China`s trade balance surplus came in at $49.83 billion in August compared with a previous surplus of $47.30 billion, and today`s reading topped analysts` estimates of $40 billion. The Chinese exports rose 9.4% last month, following an incline by 14.5% back in July, while median estimates referred to 9.0%. The nation`s imports slid 2.4% in August from a drop by 1.6%; however, median estimates referred to an incline by 3.0%, indicating weakness in domestic demand. Oil prices were also stuck in the red territory despite government data showing lower crude stockpiles in the U.S. Last week, the Energy Information Administration`s weekly report showed crude oil stockpiles dropped by 0.9 million barrels last week, matching analysts` average forecast. - West Texas Intermediate for delivery in October fell 1.11% to $92.25 a barrel on the New York Mercantile Exchange - Brent for October delivery fell 0.84% to $99.97 a barrel on the ICE Exchange in London The dollar hovered near 13-month high despite absence of economic data. As of 16:05 GMT, the USDIX traded around 83.92 after hitting a session high of 83.97 and low of 83.81. On the bullions markets, Gold prices fell slightly Monday afternoon, but the metal continued to receive support above $1,260 an ounce from the August employment report, which fueled speculation that the Fed will stay firm on its bullion-friendly monetary policy, with rates holding at its current record-low of 0.25%. As of 08:50 am ET, Spot Gold rose as high as $1,973.90 an ounce before falling 0.06% around $1,264.90. Among other precious metals: Spot Silver rose 0.40% to $19.19 an ounce Spot Platinum fell 0.45% to $1,404.25 an ounce Spot Palladium fell 0.62% to $884.65 an ounce #egyptyard
Posted on: Mon, 08 Sep 2014 14:08:12 +0000
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