WEEKLY BULLION REPORT-23 Mar To 28 Mar 2015

GOLD

Gold had a great week gaining steadily after the FOMC decision to end at 1181.90 up over $30 on the week. Bullion continued its recovery in the near term as decline in green back and slightly dovish comments from Fed chairman in recent FOMC meeting supported its sentiments. Recently the gold silver ratio has also shown some decline recently as it dipped lower towards 72.6 after touching 75 thus indicating silver outperformed gold. This  ratio can fall towards 70 as silver will continue to outperform gold in the near term.

SILVER

Silver soared  to close the week well above its trading range adding 611 points at 16.725.

COPPER

Copper added 93 points to end at 2.753. Silver marched on the cues from gold after comments from the Fed this week. Copper prices recently got support after Freeport-McMoRan Inc. halted production at Indonesia’s Grasberg, the world’s second-largest mine for the metal by capacity. About 50 workers blocked access to a road to the mine for the fourth straight day, and output was suspended, while shipments from inventories continued. China’s commodity demand will slow down as the country morphs into a less investment driven and more commodity led economy in five years, a new report by Barclays  says. This new economy, as Barclays foresees, will be not as competitive in global manufacturing, but less polluting. Influence in global industrial metals markets  will greatly diminish as domestic growth rates slow sharply and China’s global market share falls back.

CRUDE OIL Crude Oil traders took advantage of the weak US dollar to push the commodity up 92 cents but closed just in its weekly trading range of 45.45. Brent Oil  added 77 points on the weak dollar to end the weekly run at 55.20 below its trading range of the week. Brent oil traders are looking at the possibility of higher  production by Non Opec nations as well as a nuclear agreement with Iran. Crude oil may trade in a range on a volatile path as excess oil supply is keeping prices under pressure while the falling greenback may cap the downside.

NATURAL GAS

Natural Gas was weak after the EIA inventory showed a continued climb in stocks and winter weather came to an end with HDD dropping. Traders are now hoping for an early summer to increase demand. Natural gas ended the week at 2.789. Natural gas prices may trade on a volatile path as weather conditions in the US along with storage data will give further direction to the prices.

The U.S. Energy Information Administration stated in its weekly report that natural gas storage in the U.S. in the week ended March 13 fell by 45 billion cubic feet, compared to expectations for a decline of 48 billion. Total U.S. natural gas storage stood at 1.467 trillion cubic feet. Stocks were 507 billion cubic feet higher  than last year at this time and 225 billion cubic feet below the five year average of 1.692 trillion cubic feet for this time of year.

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