WEEKLY BULLION REPORT-8 Dec To 13 Dec 2014

GOLD

Gold reversed course on strong jobs data in the US to close the week at 1192.50 down $15.20 for the day. Gold touched a weekly high near 1220. The Fed ended a bond-purchase stimulus program in October and is weighing growth in the labor market as policy makers consider when the economy will be strong enough to withstand higher borrowing costs. Traders in precious metals will have to wait until next week for the FOMC meeting as traders hope for some guidance as we move into 2015. The U.S. dollar climbed to its highest level since 2009 after a much higher-than-expected nonfarm payrolls report, and gold-market watchers said how much further the dollar climbs could influence the metal next week. 

SILVER

Silver gave up 285 points on Friday to end the week at 16.29 down for the week but remaining in a fairly tight trading range as precious metals turned negative after US jobs data printed better than expected. Silver prices stretched into fresh three-week highs along with Gold after the People’s Bank of China made a surprise rate cut to its benchmark interest rates in an attempt to further support economic growth. The central bank lowered one year deposit rates by 25 basis points to 2.75% while one year lending rates were slashed by 40 basis points to 5.6%. 

COPPER

Copper continued to fall all week long and closed at 2.904 after touching 2.89 midweek.   Copper prices in the LME extended gains for the second day on signs of improved demand from US and China. Meanwhile, in the international bourses Nickel edged to a nine week high as Indonesia’s constitutional court upheld the country’s ban on exports of mineral ores. Copper prices finished the week 1.57% higher on the London Metal Exchange on Friday December 5, after a steady recovery from the Black Friday selloff throughout the week.

CRUDE OIL

There were a couple of disappointing reports, with new orders for U.S. manufactured goods dropping more than expected in October, reflecting a sharp drop in non-durable goods orders. Meanwhile, U.S. trade deficit narrowed in October with exports rising more than imports, but still came in much wider than economists anticipated, a Commerce Department report said Friday. Even As some bigger than expected decline in U.S. crude stockpiles last week limited oil’s losses. Some upbeat U.S. economic data, including a report showing a larger than expected decline in initial jobless claims also supported oil. 

NATURAL GAS

Natural Gas regained a lot of its weekly losses adding 137 points on Friday to trade at 3.786 as the weather forecasts turned colder. Despite bearish inventory report from the US Energy Information Administration (EIA), natural gas edged higher on short covering. The EIA in its periodic supply report earlier said that total natural gas storage in the region for the last week fell by 22 billion cubic feet, less than expectations of a decline of 41 billion. Natural gas futures tumbled to a new one-month low on Thursday after U.S. data showed domestic demand was about half of what was expected last week and as weather forecasts dampened the outlook for gas-fired heating demand. The surging volatility in the natural gas market has closely followed the extreme weather pattern in the U.S. in recent months, with a colder-than-average November followed by projections for a warmer-than-average December. At this rate, giving surging domestic gas production and weak demand as the market enters a period of normally peak usage, the U.S. could erase its supply deficit within weeks. 

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