Commodity World 24-07-2014 …


Gold prices closed slightly lower, after trading in a range for most part of the session on Tuesday, amid dampening safe-haven demand that had emerged on the back of developments in Ukraine and the Gaza Strip. Strength in the equity markets across the globe and positive U.S. data added further pressure on bullions.

However, gold prices still remained supported around $1,300 per ounce level, as some buying emerged at corrective levels. The gold holdings of SPDR gold trust increased to 804.84 tons as on July 22, while that of ishares Silver trust declined to 9.989.26, as on July 22. Tensions in Ukraine eased, after a train carrying the remains of some of the victims arrived in Ukrainian government territory and separatist leaders gave Malaysian authorities the aircraft’s flight recorders.

Gold prices consolidated in a range after initial lower opening, but witnessed high volatility and two-way movement after the release of U.S. economic data. Prices momentum still looks sideways-to-positive with supports seen at 27880 and 27700, while resistance is seen at 28100 and 28220. Silver prices too followed cues from gold and traded in a range in the first half of the session, but witnessed high volatility and two-way movement in the U.S. session. Silver prices now hold immediate support at 44700 and next at 44350, while resistance holds at 45300 and next at 45550.

Crude oil futures declined in the U.S. trading session on Tuesday, coming off a 3-week high ahead of weekly supply reports from API and EIA. However, major losses were capped as traders kept watch over geopolitical developments in Europe and possible tighter European Union sanctions on Russia.

Expected inventories: Crude oil -2.6mn barrels, Gasoline +1.2mn barrels and Distillate +1.8mn barrels.
The American Petroleum Institute reported on late Tuesday reported that its crude oil inventories declined 600,000 barrels in the week ending July 18. The API showed distillates inventories rose 2.5mn barrels, while gasoline supplies added 3.6mn barrels.

Natural gas futures carried Monday’s losses into Tuesday, after updated weather-forecasting models continued to call for below-normal temperatures to make their way across parts of the eastern half of the U.S. in the coming days.

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