WEEKLY BULLION REPORT-16 Feb To 21 Feb 2015

GOLD

Gold ended the week at 1229.50 recovering almost $9 on Friday as the US saw more disappointing data. The strengthening U.S. economy and dollar has made the precious metal more expensive for investors holding other currencies according to the WGC. Global demand for gold fell last year as buying plunged in two important markets, China and India, the World Gold Council. Total demand in 2014 weighed in at 3,924 tons, compared with 4,088 tons the previous year. However, growth in demand increased into the end of the year: Fourth-quarter demand was 988 tons, up 6% from the year-earlierquarter.  

SILVER

Silver surged over 500 points  as the lower US dollar sent traders to buy up the cheap metal. Silver closed the week back in its longer term trading range near the $17.50 level. Silver is trading at 17.333.  

COPPER

Copper ended flat after a steady climb this week. The orange metal is trading at 2.602 near its highest level this year.The 2007-09 recession caused everyone to re-evaluate their tolerance for risk, and nowhere was this felt more strongly than in the commodities arena, where anything from a coffee-eating pest to severe drought could cost an investor hundreds of thousands of dollars. Several years of negative returns for most commodities haven’t endeared the asset class to investors: For the three years through January, the S&P GSCI Commodity Index posted a negative return of 40%. That came after a 52% decline between June 2008 and June 2011. Commodities also can be a good hedge in times of crisis such as a major terrorist attack or outbreak  of war, at which time equities tend to fall while commodity prices rise.

CRUDE OIL

Crude Oil soared  as the dollar weakened capping a multi-day rally. Oil closed at 52.67 while Brent Oil added $2.22 to close the week at a 2015 high of 61.50. Oil prices have staged a partial recovery, heading over $60 per barrel  after data showed lower US supply, according to the Financial Times . Brent Crude has risen more than $1, or 1.4%, to $60.32 per barrel, and the price of US-traded West Texas Intermediate crude has risen 1.4% to $51.90 per barrel. The

latest release of closely watched oil rig data from US oilfield Services Company Baker Hughes showed the number of rigs in use in the world’s second-biggest economy was now at its lowest since December 2011. The U.S. drilling frenzy is over. What’s not is the boom in oil production. While companies have idled 151 rigs in five shale formations since reaching a peak of 1,157 in October, they’ll need to park another 200 for growth to stall, according to data from the U.S. Energy Information Administration. Output there will reach a record 5.468 million barrels a day in March even though the number of rigs exploring for oil is the lowest since 2013.

NATURAL GAS

Natural Gas added 89 points  after falling on higher inventory numbers than expected. The severe storms across the northeast and Midwest sent the commodity higher. Natural gas closed at 2.802.  Oilfield Services Company Baker Hughes Inc. says the number of rigs exploring for oil and natural gas in the U.S. plunged by 98 this week to 1,358 amid depressed oil prices. in its weekly report that 1,056 rigs were exploring for oil and 300 for gas. Two were listed as miscellaneous. A year ago 1,764 rigs were active.

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