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27 Jan 2014
Commodities round-up: Fed will drive gold volatility, weather pushes natural gas to four year high
FXstreet.com (London) - Gold fell from two-moth highs, selling off from overbought territory ahead of the US Federal Reserve’s FOMC meeting beginning tomorrow.
Fed calm could be disrupted by EM concerns
Gold rose to USD1,279.61 overnight, with Asian demand up despite expectations of further tapering from the Fed. While the prospect of a further bullish global economic outlook implied from another round of Fed tapering will soften demand for gold as a haven asset, the increasing volatility and risk in the EM sphere could pull back in the other direction meaning we could be set for some gold price volatility through this week.
Frosty US weather forces up energy prices
Below-normal US temperatures continue to support fuel prices. March WTI is currently trading at USD96.97/ barrel, up 0.34 percent, while February natural gas contracts are trading at USD5.34, up 2.95 percent, just below four-year highs at USD5.442. With this January shaping up to be the coldest month of the century so far, natural gas inventories remain under pressure, falling1.386 trillion cubic feet to 2.423 trillion in the first half of the month, according to the US Energy Information Administration.
Chinese concerns weigh
Industrial commodities remain broadly suppressed on Chinese growth deceleration concerns. Three-month copper contracts are trading at USD7,180.00, down 0.36 percent.
Fed calm could be disrupted by EM concerns
Gold rose to USD1,279.61 overnight, with Asian demand up despite expectations of further tapering from the Fed. While the prospect of a further bullish global economic outlook implied from another round of Fed tapering will soften demand for gold as a haven asset, the increasing volatility and risk in the EM sphere could pull back in the other direction meaning we could be set for some gold price volatility through this week.
Frosty US weather forces up energy prices
Below-normal US temperatures continue to support fuel prices. March WTI is currently trading at USD96.97/ barrel, up 0.34 percent, while February natural gas contracts are trading at USD5.34, up 2.95 percent, just below four-year highs at USD5.442. With this January shaping up to be the coldest month of the century so far, natural gas inventories remain under pressure, falling1.386 trillion cubic feet to 2.423 trillion in the first half of the month, according to the US Energy Information Administration.
Chinese concerns weigh
Industrial commodities remain broadly suppressed on Chinese growth deceleration concerns. Three-month copper contracts are trading at USD7,180.00, down 0.36 percent.