COMMODITY WEEKLY NOTE 17TH JUNE 2013 COMMODITY WEEKLY – Gold prices traded choppy within range of $20, ending the week with a small rise of 0.5%, reaching near $1,390 on Friday as traders reacted to a larger than expected jump in wholesale prices and declining consumer sentiments. Gold recovered as pullback in equities, weaker US dollar and mild safe haven buying on Syria concerns supported metal. Gold tumbled below $1,370 after better than expected jobless and retail sales data raised expectations that Fed might taper its bond buying program sooner. Gold prices also took negative cues from Japan’s decision to leave policy unchanged and S&P upgraded US economic outlook. Silver prices settled near $22 with 1.5% gain after rising unexpectedly on last trading session in just couple of minutes. Base metals complex remained under pressure on worries that central banks could start scaling back stimulus measure amid a series of weak economic data releases from China including industrial production, trade balance and inflation numbers fuelled worries over slowdown. Crude oil was the only gains, up by near 2%, reached towards $98 as Syria’s civil conflict escalated and raised concerns about supplies. Market players are awaiting for next Wednesday’s meeting of the FOMC to look for the fresh information from the Fed on when it will start to wind down it QE programs.
Posted on: Mon, 17 Jun 2013 03:42:21 +0000
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