Gold Declines Most in 13 Weeks; Palladium Continues Surge
March 25, 2014 8:20 am
Gold futures depreciated the most in 13 weeks after the outlook for greater U.S. interest rates damped demand for the precious metal as a store of value. Palladium bolster to a 31-month high on supply concerns.
Federal Reserve Chair Janet Yellen announced on March 19 that that the central bank’s standard rate may bolster about six months after financial stimulus ends, assumed later this year. Policy makers declared the third $10 billion trim in monthly bond purchases, and gold last week relinquished 3.1 percent, the most since November.
“People don’t want gold in a rising interest-rate environment,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “While concerns about Crimea remain, there has been no escalation in violence for people to jump back into the safe-haven asset.”
Gold futures for June delivery sagged down 1.9 percent to finish at $1,311.10 an ounce at 1:45 p.m. on the Comex in New York, the largest decline since December 19. Earlier, the financial value reached $1,308.40, the weakest for a most-active contract since February 20. Exchanging was 54 percent over the average for the past 100 days for this time, data recorded by Bloomberg displayed.
This year, gold has spiked up 9 percent on indications of a faltering global economy, while Russian President Vladimir Putin completed the annexation of Crimea.
Fed Stimulus
Gold rallied 70 percent from December 2008 to June 2011 as the Fed stimulated more than $2 trillion into the monetary system and trim down interest rates to boost the economy. Jeffrey Currie, head of commodities research at Goldman Sachs Group Inc., said this month that the probabilities are lifting the metal will sag down under $1,000.
“Gold began to move south again as macro funds liquidated what has proven to be a fairly profitable trade in recent weeks,” Morgan Stanley analysts led by Adam Longson said today in a report. “The change in tone from the Fed on the timing of the tightening cycle prompted another leg down.”
Last year, gold slumped 28 percent, the most since 1981, as U.S. equities advanced to a record and inflation remained muted.
Palladium bolstered on concern that the prospect of more penalties by the U.S. and the European Union versus Russia, the world’s top income of the metal, will slash down supplies.
U.S. Penalties
World leaders assemble in The Hague to talk about Ukraine amid surging concern over a Russian buildup on its neighbor’s border. President Barack Obama authorized potential future sanctions on Russian industries, including monetary services, mining, energy and metals, engineering and defense.
Palladium futures for June delivery soared 0.6 percent to $794.35 an ounce on the New York Mercantile Exchange. Earlier, the financial worth achieved $802.45, the topmost mark since August 3, 2011.
Absa Bank Ltd., a unit of Barclays Plc, plans to list New Palladium, an exchange-traded fund, in Johannesburg on March 27.
“A perfect storm has been brewing for palladium this month,” UBS AG said today in a report, citing the ETP, a strike by miners in South Africa and Russian concerns.
“If no resolution is found in South Africa in the next few weeks, we think metal tightness will only intensify if producers are forced to source metal in the market,” the bank declared.
Silver futures for May delivery downgrade 1.2 percent to $20.067 an ounce on the Comex. The financial worth declined for the sixth straight session, the lengthiest drop in almost a year.
Earlier, silver reached $19.97, the weakest since February 11. Last week, the metal gave up 5.2 percent, the most since the middle of September.
Platinum futures for April tumbled 0.3 percent to $1,431.20 an ounce on the Nymex.
The material has been provided by InstaForex Company – www.instaforex.com
Gold futures depreciated the most in 13 weeks after the outlook for greater U.S. interest rates damped demand for the precious metal as a store of value. Palladium bolster to a 31-month high on supply concerns.
Federal Reserve Chair Janet Yellen announced on March 19 that that the central bank’s standard rate may bolster about six months after financial stimulus ends, assumed later this year. Policy makers declared the third $10 billion trim in monthly bond purchases, and gold last week relinquished 3.1 percent, the most since November.
“People don’t want gold in a rising interest-rate environment,” David Meger, the director of metal trading at Vision Financial Markets in Chicago, said in a telephone interview. “While concerns about Crimea remain, there has been no escalation in violence for people to jump back into the safe-haven asset.”
Gold futures for June delivery sagged down 1.9 percent to finish at $1,311.10 an ounce at 1:45 p.m. on the Comex in New York, the largest decline since December 19. Earlier, the financial value reached $1,308.40, the weakest for a most-active contract since February 20. Exchanging was 54 percent over the average for the past 100 days for this time, data recorded by Bloomberg displayed.
This year, gold has spiked up 9 percent on indications of a faltering global economy, while Russian President Vladimir Putin completed the annexation of Crimea.
Fed Stimulus
Gold rallied 70 percent from December 2008 to June 2011 as the Fed stimulated more than $2 trillion into the monetary system and trim down interest rates to boost the economy. Jeffrey Currie, head of commodities research at Goldman Sachs Group Inc., said this month that the probabilities are lifting the metal will sag down under $1,000.
“Gold began to move south again as macro funds liquidated what has proven to be a fairly profitable trade in recent weeks,” Morgan Stanley analysts led by Adam Longson said today in a report. “The change in tone from the Fed on the timing of the tightening cycle prompted another leg down.”
Last year, gold slumped 28 percent, the most since 1981, as U.S. equities advanced to a record and inflation remained muted.
Palladium bolstered on concern that the prospect of more penalties by the U.S. and the European Union versus Russia, the world’s top income of the metal, will slash down supplies.
U.S. Penalties
World leaders assemble in The Hague to talk about Ukraine amid surging concern over a Russian buildup on its neighbor’s border. President Barack Obama authorized potential future sanctions on Russian industries, including monetary services, mining, energy and metals, engineering and defense.
Palladium futures for June delivery soared 0.6 percent to $794.35 an ounce on the New York Mercantile Exchange. Earlier, the financial worth achieved $802.45, the topmost mark since August 3, 2011.
Absa Bank Ltd., a unit of Barclays Plc, plans to list New Palladium, an exchange-traded fund, in Johannesburg on March 27.
“A perfect storm has been brewing for palladium this month,” UBS AG said today in a report, citing the ETP, a strike by miners in South Africa and Russian concerns.
“If no resolution is found in South Africa in the next few weeks, we think metal tightness will only intensify if producers are forced to source metal in the market,” the bank declared.
Silver futures for May delivery downgrade 1.2 percent to $20.067 an ounce on the Comex. The financial worth declined for the sixth straight session, the lengthiest drop in almost a year.
Earlier, silver reached $19.97, the weakest since February 11. Last week, the metal gave up 5.2 percent, the most since the middle of September.
Platinum futures for April tumbled 0.3 percent to $1,431.20 an ounce on the Nymex.
The material has been provided by InstaForex Company – www.instaforex.com
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