WEEKLY BULLION REPORT-17 Nov To 22 Nov 2014
GOLD
Gold closed the week after soaring on Friday at 1188.00 on increased physical demands. Gold futures prices have spiked higher in morning trade Friday, reversing an earlier loss of as much as 1.3% to be up $10.50, or 0.9%, at $1172 in recent trade, as the U.S. dollar pulled back from multiyear highs. The price had hit a low of $1,146 soon after 8:30 a.m. ET. The SPDR Gold Trust exchange traded fund GLD, +2.51% was up 0.9% at $112.62, erasing an earlier loss of 0.9% at an intraday low of $110.65. Prices had declined earlier, as the ICE U.S. Dollar Index rose as much as 0.6% to the highest level seen since June 2010. But the Dollar Index has since pulled back to be up just 0.1%. Gold bounced back from early losses today to hit its highest price in weeks as an oil rally damped concern that inflation will remain low and revived demand for the metal as a store of wealth. Gold soared more than $40 to a two-week high at $1,193.34 in New York after dropping more than 1% in early trade to test the $1,145 level, where strong support was seen twice in the last four sessions, triggering pre-weekend short covering.
SILVER
Silver soared on Friday adding 659 points to trade at 16.28 as the week closed. Metals ended sharply higher on Friday, after the dollar turned lower against a select band of currencies and on bargain hunting. A weak dollar tends to makes dollar-denominated commodities such as gold much cheaper and attractive for holders of other currencies.
COPPER
Copper also added 50 points to trade at 3.044. December silver surged 4.4 percent to $16.31 an ounce. January platinum added 1.2 percent to $1,213.10 an ounce, while December palladium increased 50 cents to $771.35 an ounce. High-grade copper for December delivery gained 1.7 percent to $3.05 a pound. In economic news, a Commerce Department report showed U.S. retail sales in October rebounded more than anticipated, having reported a modest drop in sales in the previous month. A separate Commerce Department report showed U.S. business inventories to have increased in line with economist estimates in September. As well, U.S. business inventories increased in line with economist estimates in September. A Labor Department report on Friday showed a notable decrease in U.S. import prices in October, with fuel prices dropping sharply. Copper prices slipped under pressure from concerns about the outlook for demand from China following weak economic from the world’s top metals
consumer, with prices on track to post their biggest weekly loss since September. The metal, used in power and construction, is down 1.3% so far this week, on track to post its biggest weekly drop since late September.
CRUDE OIL
Crude Oil recovered from its weekly low as the US dollar fell giving traders an advantage to buying up the cheap commodity which ended the week at 75.91. Brent Oil closed at its lowest weekly number in many years ending Friday at 79.60 after touching a low of 77.50. An imbalance between supply and demand has helped drive crude prices down by about 30 percent from the highs of the summer, a time when Iraqi oil supplies were threatened by advances by Islamic State insurgents. Today, the International Energy Agency predicted the slide would continue. Crude-oil futures rallied Friday amid speculation that OPEC may cut its oil production, a move that would help stabilize plunging prices. However, Friday’s rally didn’t prevent oil from ringing up its seventh consecutive weekly loss. Markets have worried that OPEC had not given any signs it would cut output when its members meet in two weeks in Vienna. Earlier this week,some analysts began to speculate OPEC may do just that. Ministers from OPEC members Venezuela and Iran have embarked on a diplomatic tour of other OPEC nations to build a consensus for higher oil prices ahead of the cartel’s Nov. 27 meeting. Analysts have said several OPEC member countries need higher oil prices to balance their government budgets.
NATURAL GAS
Natural Gas spent the week on a roller coaster ride as long term and short term weather forecasts changed. NG eased to end the week at 4.0663 after the weekly inventory report was released on Friday a day late. On the week, natural gas declined 8.9% as weather forecasters predicted a return to warmer weather by the end of the month, cutting down on heating fuel demand. The EIA reported that natural-gas supplies rose 40 billion cubic feet in the week ended Nov. 7. That was slightly above analyst expectations of an increase between 37 bcf and 39 bcf. The EIA report was delayed by one day due to Monday’s Veterans Day holiday. The overall idea this winter is to keep most of the snow in the Northeast and New England in the East. The Ohio Valley will have a near normal winter as far as snowfall and the Midwest will miss out on the big snow like last winter. The Great Plains will also see a lower than average winter for snow. The biggest snow drought will be in the Pacific Northwest with only 50% of the normal snowfall. If you ski or snowboard in the Rockies and Southern California oh you are in for a good winter.Denver could be in the middle of a major snow pattern and this would extend to the New Mexico, Colorado, Utah and Arizona Mountains. On the whole weather forecasts are subjective and change continually.
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