Bullions Gold climbed for the first time in five days, ending the worst losing streak since July on increased investment demand and robust global sales in spot markets especially in India. Silver, palladium and platinum also gained. The dollar tumbled from a seven-week high against the euro before a report today that is forecast to show U.S. jobless claims increased. The Dollar Index dropped for a second day. Global gold demand rose 12 percent in the third quarter, led by a 36 percent jump in jewelry buying from India, the world’s largest buyer, the World Gold Council said yesterday.
Bullions Gold for December delivery gained 0.9 percent to $1,348.50 an ounce in Comex. Silver for immediate delivery rose 1.8 percent to $26.09 an ounce. The price reached $29.36 an ounce on Nov. 9, the highest level since March 1980. US Initial claims numbers will be keenly watched by the markets today and any disappointments in this front could see buying momentum continuing during the COMEX trading session.
Crude oil. Oil rose from a four-week low after U.S. crude inventories unexpectedly dropped the most since August 2009, signaling fuel demand in the world’s biggest consumer may be recovering. Futures retraced some of yesterday’s 2.3 percent slump, snapping four days of declines, after the Energy Department said stockpiles shrank 7.3 million barrels last week. The dollar index traded lower on the expectation that unemployment claims increased in US.
Crude oil Gasoline inventories slipped 2.66 million barrels to 207.7 million, the lowest level since the week ended Oct. 16, 2009, the Energy Department report showed. Analysts estimated a slide of 750,000 barrels. Imports were the lowest since January 2004.
Base metals. Copper in Shanghai rallied after falling 11 percent in four days and London prices extended yesterday’s gains as China’s clarification on price controls improved investor confidence and as the dollar weakened. Plan released by the Beijing to curb the inflation helped to ease the policy uncertainties and gave some relief to the market. The Dollar Index, which tracks the greenback against a basket of currencies, dropped as much as 0.4 percent to 78.773.
Base metals February-delivery metal on the Shanghai Futures Exchange climbed as much as 2.3 percent to $9,478 a metric ton and closed at 62,290 a ton for midday break. The three-month delivery contract in London advanced as much as 1.2 percent to $8,290 a ton. Buying interest have been witnessing continuing into the European trading session as a bail out package is expected to be announced by IMF and EU for Ireland which is a supporting factor for Euro.