22 Jan 2014
Commodities outlook: More pain for gold, WTI recovers some ground ahead of EIA report
FXstreet.com (London) -
Gold set for more pain
Metals extended losses overnight on a broad risk-on trade. Spot gold fell 0.18 percent to USD1,238.87/oz while March silver contracts dropped 0.35 percent to USD19.20/oz. In a note released today, Morgan Stanley cut its outlook for gold citing a drop in haven demand.
“Price performance will continue to suffer as long as risk assets in general and U.S. equities in particular continue to perform strongly, undermining the need for portfolio managers to hold more than a modicum of safe-haven assets,” wrote analysts Peter Richardson and Joel Crane.
Chinese concerns weigh
Chinese uncertainty has not brought any support for copper prices, with March spot copper contracts falling 0.45 percent to USD333.60/lb. The reverse repo liquidity injection overnight had some short lived affects on Chinese short-dated money market rates, but the prospect of a halt in CNY appreciation and a broader lull in Chinese demand has held down commodity prices.
WTI regains some ground ahead of EIA report
WTI crude prices have seen some recovery after being under pressure ahead of today’s report from the US Energy Information Administration. Delayed by a day from its usual slot by Monday’s US holiday, the EIA report is expected to show a drop in distillate fuel inventories for a second week running. March WTI contracts are currently at USD95.42/bbl, up 0.47 percent.
Gold set for more pain
Metals extended losses overnight on a broad risk-on trade. Spot gold fell 0.18 percent to USD1,238.87/oz while March silver contracts dropped 0.35 percent to USD19.20/oz. In a note released today, Morgan Stanley cut its outlook for gold citing a drop in haven demand.
“Price performance will continue to suffer as long as risk assets in general and U.S. equities in particular continue to perform strongly, undermining the need for portfolio managers to hold more than a modicum of safe-haven assets,” wrote analysts Peter Richardson and Joel Crane.
Chinese concerns weigh
Chinese uncertainty has not brought any support for copper prices, with March spot copper contracts falling 0.45 percent to USD333.60/lb. The reverse repo liquidity injection overnight had some short lived affects on Chinese short-dated money market rates, but the prospect of a halt in CNY appreciation and a broader lull in Chinese demand has held down commodity prices.
WTI regains some ground ahead of EIA report
WTI crude prices have seen some recovery after being under pressure ahead of today’s report from the US Energy Information Administration. Delayed by a day from its usual slot by Monday’s US holiday, the EIA report is expected to show a drop in distillate fuel inventories for a second week running. March WTI contracts are currently at USD95.42/bbl, up 0.47 percent.