5 Feb 2014
Commodities: Margin hike curbs natural gas strength, gold halts losses
FXStreet (London) -
Natural gas declines on Nymex margin hikes
Natural gas fell from its four-year highs after the CME hiked margin requirements in a bid to restrain volatility.
March contracts surged to USD5.375 yesterday, a 26 percent gain since the beginning of the year. Prices have been driven by below-normal US weather conditions and by declining inventories.
Initial margins for natural gas contracts traded on Nymex have been hiked to USD5,500, from USD5,005, a 9.9 percent increase.
Nymex natural gas contracts have declined 0.56 percent to USD5.35 on the margin requirement hike.
WTI adds to yesterday’s gains
Below-normal US weather conditions have also helped to push WTI higher, with WTI contracts for March delivery gaining 0.87 percent to USD98.04/barrel.
Data set to be released by the US Energy Information Administration today is expected to show further declines in distillate supplies, with the US northeast set to be hit by a second storm this week. WIT contracts gained 0.8 percent yesterday, ending two days of declines on an improved weather outlook.
Gold halts declines
Gold has shown a small rebound from yesterday’s declines, after a strengthening equities market damped demand for the haven asset. The precious metal had been in demand as a store of value as equities and emerging market currencies came under pressure. However, a steadying of emerging market conditions slowed gold bids. Gold is currently trading at USD1,258.11 after falling to a low of USD1,252.74 yesterday,
Natural gas declines on Nymex margin hikes
Natural gas fell from its four-year highs after the CME hiked margin requirements in a bid to restrain volatility.
March contracts surged to USD5.375 yesterday, a 26 percent gain since the beginning of the year. Prices have been driven by below-normal US weather conditions and by declining inventories.
Initial margins for natural gas contracts traded on Nymex have been hiked to USD5,500, from USD5,005, a 9.9 percent increase.
Nymex natural gas contracts have declined 0.56 percent to USD5.35 on the margin requirement hike.
WTI adds to yesterday’s gains
Below-normal US weather conditions have also helped to push WTI higher, with WTI contracts for March delivery gaining 0.87 percent to USD98.04/barrel.
Data set to be released by the US Energy Information Administration today is expected to show further declines in distillate supplies, with the US northeast set to be hit by a second storm this week. WIT contracts gained 0.8 percent yesterday, ending two days of declines on an improved weather outlook.
Gold halts declines
Gold has shown a small rebound from yesterday’s declines, after a strengthening equities market damped demand for the haven asset. The precious metal had been in demand as a store of value as equities and emerging market currencies came under pressure. However, a steadying of emerging market conditions slowed gold bids. Gold is currently trading at USD1,258.11 after falling to a low of USD1,252.74 yesterday,