Page Nav

HIDE

Grid

GRID_STYLE

Classic Header

{fbt_classic_header}

Top Ad

Breaking News:

latest

Commodity Morning View For 17 June 2014

Bullions : - Gold prices ended the U.S. day session just slightly on higher Monday, after hitting a three-week high before the U.S. Fed...

Bullions: -

Gold prices ended the U.S. day session just slightly on higher Monday, after hitting a three-week high before the U.S. Federal Reserve begins a two-day policy meeting and as investors assessed the tension in Iraq and Ukraine. Positive U.S. data, meanwhile, capped gold's gains, as the numbers solidified market expectations for the Federal Reserve to wind down its monthly bond-buying program possibly this year. The IMF said it now expects the U.S. economy to expand 2% in 2014, down from its forecast of 2.8% in April.The big economic data point of the week is likely to be the U.S. Federal Reserve Open Market Committee meeting that begins Tuesday and ends Wednesday afternoon, including a press briefing following the meeting by Fed Chair Janet Yellen. Most market watchers expect the FOMC to continue to taper its monthly bond-buying program. August Comex gold was last up $0.50 at $1,274.60 an ounce. Spot gold was last quoted down $1.60 at $1,274.75. July Comex silver last traded up $0.005 at $19.66 an ounce.

Base Metals: -

Base Metals close up on positive US data and on comments from Chinese Premier of targeted growth of 7.5% this year. On Monday, market was still under the influence of an extension of China’s “targeted RRR cut”. The US economic data also proved upbeat, with both May factory output and June NAHB housing index exceeding expectations. US stock prices thus extended gains. However, investors remained cautious due to the upcoming Fed policy meeting and geopolitical crisis. The Chinese government was ready to adjust policy as an effort to boost economy. Three-month copper on the London Metal Exchange climbed 0.4 percent to $6,680 a tonne at 1500 GMT, extending small gains from the previous session.

Oil & Energy: -

U.S. Crude futures rose on Monday as violence in Iraq escalated but lost some steam as OPEC's second-largest producer tightened security around oil infrastructure & oilfields to protect them from insurgents, & IMF’s decision to trim its 2014 growth forecast for the U.S. Meantime, Russia-Ukraine tensions are still running high as Russia has cut the natural gas supply to Ukraine and said it will supply natural gas to Ukraine only if paid in advance. U.S. crude oil futures fell, as traders booked profits after oil futures hit a session high of $107.54. Surging domestic oil production in the U.S. makes it less vulnerable than other countries to a supply squeeze out of Iraq. WTI for July delivery slid as much as 32 cents to $106.58 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.70 at 9:05 a.m. Sydney time. The U.S. July contract expires on June 20. Brent for August settlement rose 48 cents, or 0.4 percent, to $112.94 a barrel on the London-based ICE Futures Europe exchange yesterday. The European benchmark crude ended the session at a premium of $6.64 to WTI for the same month.