Commodities Roundup; Crimean tensions increase gold’s safe-haven appeal – JSGCL and InvestCap Research
By: Raheel Ashraf,
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JS Global Capital Limited
Gold Least Preferred for Morgan Stanley as Decline to Resume
Gold is Morgan Stanley’s least preferred commodity among metals as prices resume a decline this year on the outlook for rising U.S. interest rates and low inflation expectations.
WTI Oil Climbs to One-Month High on Cushing Supply
West Texas Intermediate crude rose to a one-month high on speculation that inventories at Cushing, Oklahoma, the delivery point for the contract, dropped for a 10th week. Brent gained.
Dollar Gauge Falls to Lowest in 5 Months; Aussie, Kiwi Advance
The dollar dropped to the lowest level in more than five months against a basket of peers as the threat of more stimulus from the European Central Bank dissipated and U.K. industrial output exceeded forecasts.
Asian Stocks Outside Japan Rise; Topix Drops on Yen Gains
Asian stocks outside Japan rose, with a gauge of regional shares heading for the highest close in five months, as consumer companies advanced. Japanese equities fell after the yen rose the most since August.
U.S. Stocks Climb Amid Tech Rebound; Gold, Oil Advance
U.S. stocks gained as a recovery in technology shares helped the Nasdaq 100 Index rebound from its worst three-day drop since 2011. Oil, gold and Treasuries rose while the Bloomberg Dollar Spot Index slid to a five-month low.
By: Invest Capital Markets Limited
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GOLD NEAR 2-WK HIGH AS UKRAINE TENSIONS BOOST SAFE-HAVEN BIDS
Gold was trading near its highest in two weeks on Wednesday, bolstered by signs of increasing demand in China and as rising tensions over Ukraine burnished its safe-haven appeal. But investors continued to pull money out of gold-backed exchange-traded funds, raising the risk that price gains could be short lived. U.S. Secretary of State John Kerry accused Russian agents and special forces of stirring separatist unrest in eastern Ukraine, saying Moscow could be trying to prepare for military action as it had in Crimea. Moscow annexed the Black Sea peninsula last month after a referendum staged when Russian troops were already in control. The rising tensions increased gold’s safe-haven appeal, while a lower greenback made the dollar-denominated metal more attractive for holders of other currencies. Holdings in SPDR Gold Trust, the world’s largest gold-backed ETF and a good measure of investor sentiment, fell 2.7 tonnes to 806.48 tonnes on Tuesday.
WTI RETREATS FROM MONTH-HIGH AS CRUDE SUPPLIES GAIN; BRENT HOLDS
West Texas Intermediate retreated from the highest price in a month after an industry report showed crude inventories increased in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures slid as much as 0.4 percent in New York after the American Petroleum Institute said crude stockpiles expanded by 7.08 million barrels last week. Government data today will probably show a 750,000 barrel gain, according to a Bloomberg News survey. Rebels in Libya, a member of the Organization of Petroleum Exporting Countries, are standing by a demand for a share of oil revenue before they surrender two export terminals, mediator talks with authorities.
AUSSIE, KIWI DOLLARS CLIMB AFTER HOME-LOAN REPORT; WON ADVANCES
The Australian and New Zealand currencies advanced after data showed home-loan (AUHFCHG) approvals increased at a faster pace than estimated in the larger nation. The dollar snapped a three-day slide versus the yen. The won jumped to the highest level since 2008 on speculation South Korea will refrain from halting gains in its currency. A gauge of carry trades rose toward its strongest in 20 months after volatility fell to levels last seen in 2007, helping boost returns from holding higher-yielding currencies. The pound climbed to a one-month high against the euro before Bank of England policy makers meet tomorrow.