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19 Feb 2014
Commodities: Gold demand subdued ahead of FOMC minutes, Natural gas gains
FXStreet (London) - Gold has dipped below its three-month highs ahead of the FOMC minutes due to be released later today.
Gold drops from highs
Physical demand has dropped on expectations that the Fed’s stance will show a firm commitment to continuing tapering of its current USD65bn-a-month asset purchase programme. However, the minutes will be closely scrutinised for any language suggesting that the Fed might be ready to take its foot off the brake should US labour market or broader economic conditions deteriorate.
The precious metal has climbed 9.5 percent so far this year on haven demand thanks to emerging market volatility and concerns over the US economic recovery.
Spot gold is down 0.41 percent on the session to USD1,319/oz, declining from yesterday’s highs at USD1,332.45/oz.
Silver ends 40-year record bull run
Spot silver declined 0.63 percent to USD21.80, breaking 13 straight days of gains, the longest bull run in more than 40 years.
Natural gas prices resume gains on US weather conditions
Natural gas has continued to rally, breaking to new three-week highs as below-normal temperatures and poor weather continue to hit the US. Prices have been pushed higher by dwindling US gas supplies, estimated to be at their lowest levels since 2004. Data set to be released by the US energy information administration are expected to see a further fall in inventories for the week ending 14 February, putting further upside pressure on gas prices.
Natural gas contracts for March delivery are currently trading at USD5.78, up 3.9 percent.
Gold drops from highs
Physical demand has dropped on expectations that the Fed’s stance will show a firm commitment to continuing tapering of its current USD65bn-a-month asset purchase programme. However, the minutes will be closely scrutinised for any language suggesting that the Fed might be ready to take its foot off the brake should US labour market or broader economic conditions deteriorate.
The precious metal has climbed 9.5 percent so far this year on haven demand thanks to emerging market volatility and concerns over the US economic recovery.
Spot gold is down 0.41 percent on the session to USD1,319/oz, declining from yesterday’s highs at USD1,332.45/oz.
Silver ends 40-year record bull run
Spot silver declined 0.63 percent to USD21.80, breaking 13 straight days of gains, the longest bull run in more than 40 years.
Natural gas prices resume gains on US weather conditions
Natural gas has continued to rally, breaking to new three-week highs as below-normal temperatures and poor weather continue to hit the US. Prices have been pushed higher by dwindling US gas supplies, estimated to be at their lowest levels since 2004. Data set to be released by the US energy information administration are expected to see a further fall in inventories for the week ending 14 February, putting further upside pressure on gas prices.
Natural gas contracts for March delivery are currently trading at USD5.78, up 3.9 percent.