WEEKLY BULLION REPORT-20 Oct To 25 Oct 2014

GOLD

Gold soared to 1250 this week as traders moved to risk off mode looking for safe havens. There was a shift and an easing of tensions late in the week as gold dipped to trade at 1238.00 well off its lows near 1180 just a week before. Federal Reserve Bank of Boston President Eric Rosengren said he would be surprised if policymakers would see enough economic data to change their minds on ending the Fed’s bond-buying program at their next policy meeting.

SILVER

Silver continued to decline to trade at 17.256 slowly easing towards the $17.00 price weighed down by precious metals and a lack of demand for industrial metals. Federal Reserve Bank of Boston President Eric Rosengren said he would be surprised if policymakers would see enough economic data to change their minds on ending the Fed’s bond-buying program at their next policy meeting.

CRUDE OIL

Crude Oil recovered on Friday to close at 82.97 after falling to trade at 80.29 as the global glut continued on record production. On Thursday the delayed inventory report in the US showed a significant drop in stocks. Brent Oil moved up to 86.21 but the narrowing of the spread continued to worry energy traders. In the meantime, OPEC-member Venezuela has been on the other side of the output-cut divide, calling for an emergency meeting of the group to respond to falling prices. But Kuwait and Saudi Arabia aren’t budging.

NATURAL GAS

Natural Gas tumbled to 3.761 after the weekly stock report showed a sharp upward swing in inventory while the long term weather forecast was a bit warmer. Natural-gas prices briefly dipped to their lowest point since November as heavy supply and tepid demand keep causing a steady retreat.Weather forecasts show no winter chill likely before late October, meaning there is no demand for home heating large enough to absorb the record supply coming from the country’s shale-gas boom. That has pushed buyers out of the market and pushed prices down 6.8% during the past two weeks.

COPPER

Copper ended the week at 3.005 moving a bit off the bottom of 2.97 this week although traders continue to monitor the Chinese economy for metal demands. Copper prices plunged to their lowest levels in six months on Friday, pressured by concerns about the outlook for global economic growth and caution about the implications of the approaching end of US stimulus measures. Industrial metals rebounded on Friday, taking a pause after heavy losses this week, but analysts cautioned that markets were still on edge and vulnerable to deeper losses. Copper was the weakest metal, bouncing slightly after hitting six-month lows on concern about a surge of mine supply swamping the market.

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