Oil And Gold Analysis: Gold Falls From 1-Week High
ICM Brokers | Jun 09, 2014 02:54AM ET
Crude Oil
West Texas Intermediate crude climbed as U.S. payrolls exceeded their pre-recession peak, signaling greater fuel demand. Brent slipped as world leaders at D-Day commemorations in France discussed the Ukraine crisis. “The jobs number is being perceived as a positive sign for the overall economy and bullish for demand,” said Bob Yawger, director of the futures division at Mizuho Securities USA Inc. in New York. “We’ll be keeping an eye on events in France today and see if the leaders and officials gathered there will come to any agreements that ease tension in Ukraine.” The jobs data marked the fourth straight month employment increased by more than 200,000, the first time that’s happened since early 2000. The gain put total employment beyond its peak of 138.4 million reached in January 2008, one month after the start of the deepest recession since World War II. The number of employees on payrolls stood at almost 138.5 million in May.
Gold
Gold fell from a one-week high as equities advanced, diminishing demand for the precious metal as an alternative investment. The 60-day historical volatility for the metal this week reached the lowest since April 2013, and the value of exchange-traded products backed by the commodity shrank by $2.6 billion in May, the most this year. Gold’s appeal as a haven diminished as U.S. equities surged and tension between Ukraine and Russia eased. More than $1.1 trillion was added to the value of global stock markets last month. After the payrolls report, “we saw a very delayed reaction in gold, and it was equities that put pressure on,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a telephone interview. “Prices will remain range-bound as there is no big catalyst to push it one way or another.”
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.