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11 Feb 2014
Commodities: Energy prices supported by US weather, gold bullish
FXStreet (London) - Below-normal US weather conditions continue to support energy commodity prices.
WTI breaks USD100 level
WTI contracts for March delivery are up 0.44 percent, with the US weather conditions putting pressure on distillate supplies. The contracts are now trading above the psychologically important 100-level at USd100.31/barrel. Yesterday’s close at USD100.6/barrel was the highest since 27 December. Tomorrow’s report from the US Energy Information Administration is expected to show a further above-average decline in distillate inventories. With further below-normal weather conditions set to hit the US, upwards pressure will remain as heating oil demand continues.
Natural gas resumes bullishness
Natural gas has regained its bullish momentum, after falling from highs. Prices for Nymex natural gas contracts for March delivery closed at USD4.579 yesterday, its lowest level since 21 January. Futures have made up some lost ground today, climbing 1.11 percent so far to USD4.63 and up 9.5 percent year-to-date.
Gold supported by dollar concerns
Gold remains in bullish territory thanks to uncertainty over the US economic recovery as well as increased Chinese and emerging market demand.
Janet Yellen is set to testify before the House Financial Services Committee for the first time since assuming the chairmanship of the US Federal Reserve. The dollar has been subdued in advance of her appearance, helping to support dollar-denominated gold prices.
Emerging market currency concerns and equity market fragility have helped to push up gold prices this year after the precious metal had it’s worst slump since 1981 last year. EM inflation concerns as well as currency weakness have ramped up demand for gold as a haven asset and store of value. Gold is set to post a fifth-straight gain today, the longest winning streak since 28 August.
Spot gold is currently trading at USD1,283.77/ounce, up 0.71 percent on the session, after hitting USD1,287.81 earlier today, its highest level since 18 November.
WTI breaks USD100 level
WTI contracts for March delivery are up 0.44 percent, with the US weather conditions putting pressure on distillate supplies. The contracts are now trading above the psychologically important 100-level at USd100.31/barrel. Yesterday’s close at USD100.6/barrel was the highest since 27 December. Tomorrow’s report from the US Energy Information Administration is expected to show a further above-average decline in distillate inventories. With further below-normal weather conditions set to hit the US, upwards pressure will remain as heating oil demand continues.
Natural gas resumes bullishness
Natural gas has regained its bullish momentum, after falling from highs. Prices for Nymex natural gas contracts for March delivery closed at USD4.579 yesterday, its lowest level since 21 January. Futures have made up some lost ground today, climbing 1.11 percent so far to USD4.63 and up 9.5 percent year-to-date.
Gold supported by dollar concerns
Gold remains in bullish territory thanks to uncertainty over the US economic recovery as well as increased Chinese and emerging market demand.
Janet Yellen is set to testify before the House Financial Services Committee for the first time since assuming the chairmanship of the US Federal Reserve. The dollar has been subdued in advance of her appearance, helping to support dollar-denominated gold prices.
Emerging market currency concerns and equity market fragility have helped to push up gold prices this year after the precious metal had it’s worst slump since 1981 last year. EM inflation concerns as well as currency weakness have ramped up demand for gold as a haven asset and store of value. Gold is set to post a fifth-straight gain today, the longest winning streak since 28 August.
Spot gold is currently trading at USD1,283.77/ounce, up 0.71 percent on the session, after hitting USD1,287.81 earlier today, its highest level since 18 November.