4 Feb 2014
Commodities: Chinese demand concerns continue to weigh, gold sheds some gains
FXStreet (London) - Commodities markets remain subdued on a weakening outlook for Chinese demand. In addition, commodity prices have not been helped by reduced liquidity due to the Chinese new year. Markets in China are closed this week for Lunar New Year holidays.
Copper extends losses on weak US data
Three-month copper is currently trading at USD7,038.00/ton, down 0.38 percent and heading towards a tenth straight day of losses, its longest losing streak since 1986.
Yesterday’s US ISM manufacturing numbers added to pessimism, plummeting to 51.3, down sharply from a revised 60.5 in December against consensus expectations of a 0.5 percent drop to 60.0. US manufacturing showed the largest drop in new orders in 35 years.
In a separate report, the US Commerce Department said construction spending rose just 0.1 percent in December, down from the 0.8 percent increase in November.
While private sector construction remains robust, reduced state infrastructure spending has dragged on the construction data.
Gold sheds some of yesterday's gains
Gold prices have declined slightly from yesterday’s rally. Spot gold is currently trading at USD1,254.47, down 0.25 percent after yesterday’s peak of USD1,266.10. The precious metal added 1.1 percent on the session on poor US data. Gold climbed throughout January thanks to emerging market concerns, with tumbling EM currencies increasing demand for gold as a store of value. However, despite recent data, the US economy is on a strengthening trend which will be longer-term bearish for gold prices.
Natural gas climbs on renewed US weather concerns
Natural gas ended three days of declines as US weather conditions boosted heating oil demand. Forecasts of a spreading winter storm hitting the Northeast pushed up prices. Nymex natural gas for March delivery is currently trading at USD5.03, up 1.64 percent after hitting a high of USD5.078. March contracts had hit a week low of USD4.905 on an improved weather outlook. Natural gas prices have rallied 20 percent in 2014, driven by below-normal US temperatures.
Copper extends losses on weak US data
Three-month copper is currently trading at USD7,038.00/ton, down 0.38 percent and heading towards a tenth straight day of losses, its longest losing streak since 1986.
Yesterday’s US ISM manufacturing numbers added to pessimism, plummeting to 51.3, down sharply from a revised 60.5 in December against consensus expectations of a 0.5 percent drop to 60.0. US manufacturing showed the largest drop in new orders in 35 years.
In a separate report, the US Commerce Department said construction spending rose just 0.1 percent in December, down from the 0.8 percent increase in November.
While private sector construction remains robust, reduced state infrastructure spending has dragged on the construction data.
Gold sheds some of yesterday's gains
Gold prices have declined slightly from yesterday’s rally. Spot gold is currently trading at USD1,254.47, down 0.25 percent after yesterday’s peak of USD1,266.10. The precious metal added 1.1 percent on the session on poor US data. Gold climbed throughout January thanks to emerging market concerns, with tumbling EM currencies increasing demand for gold as a store of value. However, despite recent data, the US economy is on a strengthening trend which will be longer-term bearish for gold prices.
Natural gas climbs on renewed US weather concerns
Natural gas ended three days of declines as US weather conditions boosted heating oil demand. Forecasts of a spreading winter storm hitting the Northeast pushed up prices. Nymex natural gas for March delivery is currently trading at USD5.03, up 1.64 percent after hitting a high of USD5.078. March contracts had hit a week low of USD4.905 on an improved weather outlook. Natural gas prices have rallied 20 percent in 2014, driven by below-normal US temperatures.