Gold, crude oil rebound on weaker dollar, key data awaited . . . . . . . . . . Gold prices headed for the first gain in seven sessions Wednesday as the U.S. dollar fell amid speculation over the Federal Reserve’s stimulus program. The US Dollar Index, a measure against 10 currencies, declined before data tomorrow that is expected to show the country`s economic growth slowed last quarter. The gauge reached a six-week high on November 4. Gold is set for the first annual drop in 13 years as some investors lost faith in the metal as a store of value. The Fed’s stimulus program has been a major driver in the metal’s prices, mainly as a hedge against inflationary pressures from the central bank’s super-easy policies. The Federal Reserve is expected to start cutting debt buying in March 2014, but investors are largely watching economic data and waiting for more clues about when the Fed my finally start tapering. Investors await an update on U.S. gross domestic product, due Thursday, followed by October’s jobs report on Friday. - Spot Gold climbed to $1317.99 an ounce from $1310.80 late Wednesday. The U.S. dollar index , which tracks the performance of the U.S. dollar against a basket of other major currencies, was last at 80.63, compared with 80.76 late Wednesday. Crude Oil Crude oil bounced off its lowest level since June during European session on Wednesday, as market players awaited key U.S. weekly supply data, to gauge the strength of demand from the world’s largest oil consumer. - Light, sweet, crude oil futures for December delivery last traded at $94.06 a barrel, up 37 cents after dropping for the last six sessions. Oil traders were awaiting data from the U.S. government on oil and fuel supplies later in the day. The report was expected to show that U.S. oil stockpiles rose by 1.7 million barrels last week, while gasoline inventories were forecast to fall by 400,000 barrels. On Tuesday, the American Petroleum Institute said that U.S. crude inventories rose by 870,000 barrels last week, while gasoline stockpiles declined 4.3 million barrels. Market participants will also eye U.S. third-quarter Gross Domestic Product (GDP) on Thursday and October non-farm payrolls data on Friday. Analysts see growth in the world’s biggest economy slowed last quarter to 2 percent from 2.5 percent in the previous three months. - December Brent last traded at $106.09 a barrel, compared with $105.58 late Tuesday. Rigged Brent BP and Royal Dutch Shell, among other major oil companies have been accused of manipulating the Brent crude oil price for more than a decade , in allegations filed in a lawsuit New York. The North Sea oil benchmark is used as the basis for trades across the global commodity markets, affecting the price of thousands of consumer products from petrol to food, and also helps determine where costs are headed for fuels including gasoline and heating oil. The case, which follows at least six other U.S. lawsuits alleging price-fixing in the Brent market, provides what appears to be the most detailed description yet of the alleged manipulations and lays out a possible road map for regulators investigating the matter. #egyptyard
Posted on: Wed, 06 Nov 2013 14:40:30 +0000
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