Bullions Tradingscenario in the bullions today? The gold futures tumbled after reaching to record high prompted some investors liquidate the position and lock in the profits and rebounding dollar declined the alternative investment of appeal of the precious metals. Gold for immediate delivery lost as much as 1 percent to $1,388.45 an ounce. The metal yesterday touched an all-time high of $1,431.25. This is temporary profit- taking before the end of the year. Gold is anticipated to continue to be favored through next year as a haven.
Bullions (Contd..) The dollar rebounded against the most of it’s major trading peer currencies on the expectation of boost in the economic recovery on the extension of tax cuts, as the U.S. President Barack Obama agreed to extend Bush-era tax cuts for two years. The decline in the initial jobless claims is forecasted by the Economists, this is also extending the support to the green back. Gold has jumped 27 percent this year, heading for the 10th straight annual gain, on the spending trillions of dollars and keeping lower borrowing costs by the governments to bolster economies hurt by the most severe global recession since World War II. Futures for February delivery fell as much as 1.4 percent to $1,388.90 an ounce on the Comex in New York. Silver dropped as much as 0.7 percent to $28.465 an ounce, reversing an earlier gain of as much as 1.4 percent.
Crude oil. What was the trend in the Crude? The crude declined for conductively for the second day on the worries over the sovereign debt crisis in the euro zone is fueling the speculation that the demand may be hampered and the US gasoline supplies have rose to most since January according to an Industry report. Crude Futures continued it’s losing streak from yesterday’s 0.8 percent slide as traders secured profits from a rally to $90.76 a barrel, the highest in 26 months. The American Petroleum Institute said gasoline stockpiles increased 4.8 million barrels last week. Crude for January delivery lost as much as 1.2 percent, to $87.62 a barrel, in electronic trading on the New York Mercantile Exchange. Yesterday, it snapped a four-day rally after rising to the highest since Oct. 8, 2008.
Crude oil(Contd..) According to industry-funded API yesterday’s report U.S. crude stockpiles decreased 7.34 million barrels to 349.3 million last week. The Investors will be closely watching U.S. oil inventory reports for evidence of improved demand. The market is expecting the OPEC not to raise the production levels in it’s meeting this week in Ecuador, as group members consider the global economic recovery strong enough to withstand price gains.
Base metals. How was the trading sentiment in the base metals today? Copper fell from record high in the major metals exchanges as some investors preferred to lock in the profits, as the metal is reached it’s all time high. Copper for three-month delivery on the London Metal Exchange fell as much as 1.1 percent to $8,785 a metric ton. The contract advanced for a sixth day yesterday, the longest rally since July, reaching a record $9,044 a ton. The metal used in construction and automobiles has gained 19 percent this year, rallying on prospects that the U.S. will take further steps to boost its economy, including extending tax cuts and increasing asset purchases.
Base metals (Contd..) The rebounded dollar added some pressure the prices. The greenback rose for a third day against a six currency basket including the euro and yen after President Barack Obama agreed to extend tax cuts for two years. The metal for March-delivery on the Shanghai Futures Exchange lost as much as 1.5 percent to 65,820 yuan a ton. Futures on the Comex in New York dropped as much as 1.1 percent to $4.0045 a pound, after climbing to a 31-month high of $4.1315 yesterday. In LME Aluminum fell 1.1 percent, zinc dropped 2.9 percent, lead decreased 1.8 percent, nickel shed 1.6 percent. Tin declined 0.2 percent.