Commodities Roundup; Dollar rises to an almost seven-week high – JSGCL and AHC Research
By: Raheel Ashraf,
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JS Global Capital Limited
Gold Trades Near Three-Week Low as Data Adds to Tapering Case
Gold traded little changed after a six-day losing run that sent prices to a near-three-week low as data showed U.S. service industries grew faster than forecast, boosting the case for the Federal Reserve to pare stimulus.
WTI Rebounds From Five-Month Low Before U.S. Fuel Supply Data
West Texas Intermediate rebounded from the lowest level in five months before a report that may show U.S. fuel supplies shrank. Price declines the past week are probably excessive, according to a technical indicator.
Dollar at Almost 7-Week High as Service Industries Top Forecasts
The dollar rose to an almost seven-week high after a gauge of service industries climbed more than forecast in October, adding to the case for the Federal Reserve to taper monthly bond purchases.
Asian Stocks Gain, Snap Four-Day Decline, as Yen Weakens
Asian stocks rose, snapping a four-day drop on the regional equities benchmark, as Japanese shares were boosted by the yen weakening against the dollar and Commonwealth Bank of Australia posted a surge in profit.
U.S. Stocks Decline as Investors Await GDP, Jobs Reports
U.S. stocks declined, following two days of gains that sent the Standard & Poor’s 500 Index to within five points of a record high, as investors awaited this week’s data on economic growth and employment.
By: Arif Habib Commodities
+92 21 32460734
Gold struggled to shake off its longest losing streak in nearly six months as doubts persisted over when the U.S. Federal Reserve would begin scaling back its stimulus measures. The metal has lost about 3 percent since Oct. 28, logging its longest losing run since mid-May, when it dropped 8 percent in seven days. Analysts believe gold could break below the $1,300 mark ahead of the U.S. nonfarm payrolls report on Friday. The timing of any tapering of the Fed’s $85 billion in monthly bond purchases has been a key factor driving gold prices this year. Gold has lost a fifth of its value so far this year as an improving economy has prompted investors to move to stocks and the Fed to think about cutting back its stimulus. Recent mixed economic data has cast doubts over the exact timing of any move by the bank, leaving markets to speculate whether the Fed would act before year-end.
U.S. crude futures on Wednesday hovered near five-month lows touched overnight, hurt by concerns over demand as stockpiles in the world’s top oil consumer rose again. Crude inventories climbed 871,000 barrels in the week to Nov. 1 to 382 million barrels, data from industry group the American Petroleum Institute showed on Tuesday. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 999,000 barrels.
Asian stock markets were mixed on Wednesday, as ongoing uncertainty over the direction of U.S. monetary policy kept investors in a cautious mood.
Gold: Sell On Strength
Oil: Sell On Strength
Silver: Sell On Strength