MARKET REPORT 


Gold climbed on Friday after a disappointing nonfarm payroll report that left
traders confused. Gold ended the week at 1245.20. U.S. economy added only
74,000 jobs in December, the slowest pace since January of 2011. The US central
bank last month announced a $10bn cut in its in monthly asset purchases, to
$75bn. Non-interest-bearing gold, which had been boosted by central bank
liquidity and a low interest rates environment, lost 28% of its value in 2013. The
fall ended a 12-year bull run, as signs of improving US economic conditions led
the Fed to reconsider the validity of its monetary stimulus, prompting investors to
shift money to equities. Analysts’ forecasts remain subdued and expectations are
mostly for another drop in gold prices this year. Bank of America Merrill Lynch cut
its 2014 average price forecast to $1,150, citing an uncertain macroeconomic
environment and lack of investment demand. Barclays said it expected gold prices
to average $1,205 an ounce in 2014, mostly due to a macroeconomic backdrop of
modest growth, fewer tail risks and a stronger dollar increasing the scope for
further disinvestment. In the physical market, trading volumes for 99.99% purity
gold contract on the Shanghai Gold Exchange rose to more than 16 tonnes from
Thursday’s 13 tonnes, while premiums climbed to $19 from $17.


The silver price was unchanged in New York at $19.59 but rose in Asian trade to
$19.67 ahead of London’s opening. Ahead of New York’s opening, it was trading
at $19.76. The silver price has changed its price pattern back to little movements
on a daily basis followed by strong moves in quick bursts. Again we need to see
that silver investors are very like gold investors, focussed on the monetary aspect
of silver, not its role as an industrial metal. These investors control the silver price
and are U.S. based.


Crude Oil tumbled all week and closed at 92.65 as supply outstripped demand.
Brent Oil also eased to trade below 107.00. Global oil prices rebounded Friday
from the prior day’s losses, finding support from robust demand data in China and
dollar weakness after a disappointing US jobs report. The European benchmark,
Brent North Sea crude for February, rose 86 cents to settle at $107.25 a barrel in
London trade. The WTI price had fallen Thursday to its lowest level since May 1,
weighed down by high US crude and product stockpiles that suggested supplies
continue to outpace demand. But on Friday, WTI pushed higher, solidly wiping
out the prior day’s 67-cent loss. The dollar traded lower after the US Labor
Department reported a meager 74,000 jobs were added in the United States in
December, far below the 197,000 consensus forecast. A cold snap sweeping
across North America has meanwhile boosted demand for heating fuel, and
helped push oil prices higher. The surge in demand for heating fuels will inevitably
raise the demand for crude oil, which is used as a feedstock for heating fuels. As
such, crude oil prices are likely to be well-supported.


Copper prices fell by 0.23% in futures trade today as speculators trimmed 
positions, tracking a weak global trend. Analysts attributed the fall in copper 
prices to a weak global trend after a gauge of China’s services industry fell, stoking 
concern that demand will weaken in the biggest consumer. Copper futures 
dropped on Friday on concerns over Chinese growth and as the U.S. dollar 
strengthened, while crude oil extended recent losses and a global gauge of 
equities drifted lower. The fall in Copper Feb contract is further got support after 
Indonesian ban for their export of ores .Federal Reserve Chairman Ben Bernanke 
said the U.S. central bank is committed to highly accommodative policy even after 
deciding last month to trim its bond-buying stimulus. 


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