WEEKLY BULLION REPORT-18 May To 23 May 2015

GOLD

Gold prices rose on Friday, as traders readjusted their expectations on how soon the Federal Reserve might raise U.S. interest rates following the release of slightly weaker than expected data on nonfarm payrolls. On the COMEX, division of the New York Mercantile Exchange, gold futures for June delivery tacked on $6.70, or 0.57%, to end the week at $1,188.90 a troy ounce. For the week, prices of the precious metal rose $12.30, or 1.23%, halting three straight weeks of losses. Futures were likely to find support at $1,168.40, the low from May 1, and resistance at $1,199.30, the high from May 5.  

SILVER

COMEX, Silver futures for July delivery ended Friday's session at $16.46 a troy ounce, up 16.8 cents, or 1.03%. Silver gained 33.5 cents, or 2.04%, on the week, the second consecutive weekly advance. The Labor Department reported that the U.S. economy added 223,000 new jobs in April, just below expectations for jobs growth of 224,000. March’s figure was revised down to just 85,000 from a previously reported gain of 126,000. The unemployment rate fell from 5.5% to a near seven-year low of 5.4% last month, broadly in line with forecasts. The U.S. dollar initially rallied against a basket of major currencies following the data, before giving back some gains, as traders focused on the negative details of the jobs report.  

COPPER

Copper for July delivery inched up 0.2 cents, or 0.09%, on Friday to settle at $2.920 a pound. For the week, prices dipped 1.1 cents, or 0.27%. Copper fell to an intraday low of $2.888 on Friday, the weakest level since May 1, before turning modestly higher as weak Chinese trade data fuelled speculation policymakers in Beijing will have to do more to jumpstart the economy. China reported a trade surplus of $34.1 billion in April, below expectations for a surplus of $39.5 billion. Exports slumped 6.4% from a year earlier last month, disappointing expectations for a gain of 2.4%, while imports sank 16.2%, worse than forecasts for a decline of 12.0%.

CRUDE OIL

West Texas Intermediate oil futures edged higher on Friday, as an ongoing collapse in rigs drilling for oil in the U.S. added to expectations that shale oil production has peaked and may start falling in the coming months. On the New York Mercantile Exchange, crude oil for delivery in June tacked on 45 cents, or 0.76%, to end the week at $59.39 a barrel. On Thursday, NYMEX, oil plunged $1.99, or 3.27%, to settle at $58.94 as investors cashed out of the market to lock in gains from a recent rally. New Yorktraded oil futures rose to $62.58 on Wednesday, the most since December 10. For the week, futures inched up 9 cents, or 0.41%, the sixth weekly gain in the past seven weeks. Industry research group Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. fell by 11 last week to 668, the 22nd straight week of declines and the lowest level since September 2010.Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.

NATURAL GAS

Natural gas futures soared more than 5% on Friday to hit a seven-week peak, as about of technical buying kicked in after prices broke above key resistance levels. On the New York Mercantile Exchange, natural gas for delivery in June hit an intraday peak of $2.888 per million British thermal units, the strongest level since March 20, before ending the week at $2.880, up 14.6 cents, or 5.34%. On Thursday, natural gas declined 4.2 cents, or 1.51%, to end at $2.734. For the week, the June natural gas contract jumped 14.2 cents, or 3.75%, the second straight weekly gain. Futures were likely to find support at $2.711 per million British thermal units, the low from May 7, and resistance at $2.933, the high from March 20. Gains accelerated after futures climbed above the 100-day moving average for the first time since December, triggering fresh buy orders amid bullish chart signals. Meanwhile, forecasts for warmer weather across the U.S. over the next two weeks lifted near-term demand expectations for the fuel. Updated weather forecasting models called for warmer-than-average weather over much of the Midwest and Northeast, as well as the South, which was likely to boost cooling demand.

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