Commodity Tips
Gold turned weak on Friday after gaining steadily most of the week in response to Fed speakers and the release of FOMC minutes on Wednesday. Gold closed the week at 1223.30. Gold futures inched down at the end of the week with a stronger U.S. dollar trumping a further wave of risk aversion as global equities declined, taking a cue from a sharp selloff in U.S. stocks a day earlier. Global equities weakened. U.S. stock index futures pointed to a weaker start on Wall Street, but trimmed earlier losses, while the dollar rose, with the ICE dollar index gaining 0.4%. A stronger dollar can weigh on commodities priced in the unit by making them more expensive to users of other currencies.Gold retained gains from a four-day rally on Friday and was headed for its best week in nearly four months as a slump in equities and growing worries over the global economy attracted safe-haven bids for the metal.The metal has risen more than 2.7% for the week, its best since the week ended June 20, after recovering from a 15-month-low under $1,200 hit on Monday.

Silver spent most of the week bouncing around in a tight trading range near the 17.-17.50 price range under the influence of precious metals and base metals.Indian traders said increased buying by jewelers and retailers to meet the coming festive and wedding season demand mainly kept precious metals higher. They said a firming global trend on signs of more physical demand amidst escalating tensions in the Middle East also bolstered the sentiment.

Crude Oil recovered its deep losses early on Friday but still ended the week on the downside sliding 20 cents on Friday along and closed the week at 85.59 whileBrent Oil tumbled 23 cents at the end of the week to close at a near term low of 89.82. WTI crude pared the biggest weekly drop since January amid signs of aglobal glut. Brent, the benchmark for more than half the world’s oil, gained after reaching a four-year low in intraday trading.WTI closed yesterday more than 20% below its June peak, a common definition of a bear market. Brent is down 22% from the June high. Both crudes settled higher for the first time in four days after falling more than 2% during trading today. Oil cartel OPEC kept its world oil demand growth projections unchanged for 2014 and 2015, as global economy forecasts remained stable going into next year. The estimates were issued as the price of oil continues to fall because of gloomy sentiment on the market about prospects for economic growth, notably in the eurozone. World demand will grow by 1.05 million barrels per day (mbpd) to 91.19 mbpd this year, the Organization of Petroleum Exporting Countries said in its latest monthly report. For 2015, the cartel predicted demand to reach 92.38 mbpd, again unchanged from its previous forecast.

Natural Gas moved between losses and gains this week in response to long term weather forecasts but ended up in a the middle of its trading range at 3.8626 after tumbling on the EIA inventory report. The U.S. EIA said gas stockpiles rose 105 billion cubic feet in the week ended Oct. 3, compared with the average analysts’ projection of 108 billion cubic feet added. The increase brings total inventories to 3.205 trillion cubic feet, 10.1% lower than year-ago levels and 10.5% below average. Still, the data weren’t far off estimates and reflected continued robust gas production and limited demand given mild weather that has failed to drive the need for either gas-fired cooling or heating. It was the 25th consecutive increase in stored inventories, and the stockpile increase was 25% bigger than average.The steadily increasing stockpiles have eased worries that U.S. supplies wouldn’t be adequate for the 2014-15 winter.Natural gas for November delivery was down in early trade but jumped 3% from the low after weekly U.S. data showed a smaller increase to stockpiles of the fuel than analysts had expected. The contract then fell back into negative territory and bounced around for the rest of the day. Analysts and traders said the rally was likely due to traders closing bearish bets against the market after the data missed expectations, rather than a fundamental shifting view on the market based on supply-demand dynamics..

Copper closed the week at 3.038 recovering from its fall below $3 after the IMF reduced global growth and predicted a recession in the eurozone. Copper trimmed its first weekly gain since August amid worry that European economies are slowing down and Germany is heading for recession. Copper on the London Metal Exchange slipped as much as 1.2%, leading industrial metals lower. There are signs the euro area’s economic recovery is losing momentum, European Central Bank President Mario Draghi said. Exports from Germany, the third-largest metals consumer, slumped the most since January 2009, data showed yesterday, while a report by four economic institutes warned the nation’s economy is on the edge of recession. The metal used in power and construction has lost 9% for the year, weighed down by the outlook for slack demand as more supplies enter the market.

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