27 Sep 2013
Gold falling due to a rise in the greenback, profit-taking
FXstreet.com (Athens) – The commodities are heading on opposites sides as gold tumbles on greenback return, whilst oil prices are mostly firmed.
The greenback gained broadly on Thursday, recouping losses from the previous session, after stronger than-expected U.S. weekly jobless claims data favored the view that the Federal Reserve will wind-down is stimulus program this year. Elaborating on, in late afternoon trading, the DXY was up 0.3 percent at 80.554, above a seven-month trough of 80.06 hit on Sept. 18. However, oil prices firmed on Thursday in light trading, despite easing political worries and an improving supply picture, as traders sought bargains after sharp losses earlier this month. Precisely, Brent oil gained 89 cents to $109.21 a barrel. What’s more, the U.S. crude futures rose 37 cents to $103.03 a barrel, its first day of gains following five straight sessions of losses. Total U.S. and Brent crude trading volumes were 37 percent below their respective 30-day averages. The data also showed U.S. exports of refined products last week reached the highest level on record at 3.4 million barrels per day, 17.5 percent higher than a year ago, as refineries processed crude at high rates.
On the other hand, the spot price of gold fell on Thursday as a rise in the dollar and mixed U.S. economic indicators prompted investors to take profits after gains in the previous session. Spot gold was down 0.8 percent at $1,322.40 an ounce. U.S. gold futures settled down $12.10 an ounce at $1,324.10, with trading volume in line with its 30-day average. For the third quarter, gold is on track to rise 7 percent after a record 23 percent decline in the second quarter. Finally, silver fell 0.5 percent to $21.65 an ounce. At the time of writing, the vast majority of major commodities heading south- except for silver- (WTI -0.31%, Brent -0.11%, Gold +0.02%, Silver -0.61%), after hawkish comments from Fed's George weigh on risk appetite.
The greenback gained broadly on Thursday, recouping losses from the previous session, after stronger than-expected U.S. weekly jobless claims data favored the view that the Federal Reserve will wind-down is stimulus program this year. Elaborating on, in late afternoon trading, the DXY was up 0.3 percent at 80.554, above a seven-month trough of 80.06 hit on Sept. 18. However, oil prices firmed on Thursday in light trading, despite easing political worries and an improving supply picture, as traders sought bargains after sharp losses earlier this month. Precisely, Brent oil gained 89 cents to $109.21 a barrel. What’s more, the U.S. crude futures rose 37 cents to $103.03 a barrel, its first day of gains following five straight sessions of losses. Total U.S. and Brent crude trading volumes were 37 percent below their respective 30-day averages. The data also showed U.S. exports of refined products last week reached the highest level on record at 3.4 million barrels per day, 17.5 percent higher than a year ago, as refineries processed crude at high rates.
On the other hand, the spot price of gold fell on Thursday as a rise in the dollar and mixed U.S. economic indicators prompted investors to take profits after gains in the previous session. Spot gold was down 0.8 percent at $1,322.40 an ounce. U.S. gold futures settled down $12.10 an ounce at $1,324.10, with trading volume in line with its 30-day average. For the third quarter, gold is on track to rise 7 percent after a record 23 percent decline in the second quarter. Finally, silver fell 0.5 percent to $21.65 an ounce. At the time of writing, the vast majority of major commodities heading south- except for silver- (WTI -0.31%, Brent -0.11%, Gold +0.02%, Silver -0.61%), after hawkish comments from Fed's George weigh on risk appetite.