WEEKLY BULLION REPORT-27 Jan To 31 Jan 2015

GOLD

Gold eased by $6.40 after holding near highs above the 1300 level this week on global stress ahead of the ECB meeting and Sunday’s Greek election. Gold closed the week at 1294.30 well within its weekly trading range. But with the euro hitting an 11-year low against the dollar, gold prices have since pared some of those gains as investors focused on the impact of the stronger US currency, which makes dollardenominated assets more expensive for foreign investors. Gold was completely dislocated from the dollar, meaning that euro-gold is the best performing commodity this year, helping dollar gold stay fairly stable around $1,300. But that strength in the dollar is now proving too much. Spot gold was down 0.3% at $1,297.20 an ounce. Bullion peaked at $1,306.20, it’s highest since August 15, and it was still headed for a third straight weekly gain. 

SILVER

Silver dipped 53 points to trade at 18.307 well within its range for the week seeing little action except in response to the US dollar. Silver fell as much as 1.3%  as the dollar rose and markets digested the mixed implications of a European Central Bank plan to pump about one trillion Euros into the euro zone’s flagging economy. The metal, often seen as a hedge against inflation, jumped more than 1% above $18.50 an ounce after the ECB announcement. But with the euro hitting an 11-year low against the dollar, metal prices pared some of those gains as investors focused on the impact of the stronger U.S. currency, which makes dollar-denominated assets more expensive for investors holding other currencies.  

COPPER

Copper ended the week at 2.498 at the bottom of its weekly range, posting its 6th straight weekly loss as it moved back towards a recent 5-1/2 year low, weighed down by a stronger dollar and concerns about the outlook for demand from top consumer China. The metal used in power and construction posted a 3.5% weekly fall. The last time copper had a six-week losing streak was in mid-2012.  

CRUDE OIL

Crude Oil ended falling to trade at 45.32 while Brent Oil gained 11 points to reach 48.63. The commodity remained bearish this week with the US EIA inventory reporting higher than expected supplies. A wrench was thrown into the work with the unexpected death of the King of Saudi Arabia. US crude fell to 45.32, the lowest since the middle of last week, following news that a crude oil distillation unit in BP’s 413,500 barrel a day Whiting, Indiana, refinery was shut down , Brent crude was buoyed by market uncertainty over the future of Saudi oil output, while US crude fell on more signs of oversupply. Saudi Arabia’s new king, Salman, who took the throne morning.

after the death of his brother Abdullah, is expected to continue OPEC’s policy of keeping oil output steady to protect market share. 

NATURAL GAS

Natural Gas soared on Friday adding 136 points to trade at 2.971 as weather in February was forecast to be colder than expected and new winter storms hit the east coast of the US.  Natural gas futures gained in New York as forecasts turned colder for the start of February, signaling increased demand for the heating fuel. Below-normal temperatures in the Northeast over the next five days will be followed by colder weather, which will spread into the Midwest and South Jan. 28 through Feb. 6, Commodity Weather Group LLC. Gas prices are trading  at the lowest seasonal levels since 2012 as winter in the U.S. so far has been milder than it was a year ago. 

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