MTECHTIPS COMMODITY MARKET NEWS 2
Gold slides on euro zone recession fears
Gold futures extended losses from Thursday’s U.S. session in the
early part of Asian trading todayas traders digested some slack economic data out of Europe.On the Comex division of the NewYork Mercantile Exchange, gold futures for April delivery fell 0.24% to USD1,631.65 per troy ouncein Asian trading Friday. That decline comes after gold settled down 0.54% at USD1,636.15 a troyounce in U.S. trading on Thursday.Gold futures were likely to test support USD1,626.05 a troyounce, the low from Jan. 4, and resistance at USD1,653.75, Wednesday's high.On Thursday, arepor
ted showed the euro zone’s fourth
-quarter GDP contracted by 0.6%, well below expectationsfor a 0.4% quarterly decline and far surpassing the previous 0.1% contraction. It was the worst rateof contraction since 2009 and the third straight quarter of negative growth. Typically, economistsconsider an economy to be in recession with two consecutive negative GDP readings.Adding to the
selling pressure on the euro and thereby gold, other reports showed Germany’s fourth
-quarter GDPcontracted by 0.6%, below exp
ectations calling for a 0.5% drop. France’s fourth
-quarter GDP shrank
0.3% while Italy’s contracted by 0.9%.
Germany, France and Italy are the euro zone’s three largest
economies, in that order.
Oil down despite speculation of OPEC supply cut
il futures declined modestly during Friday’s Asian session even amid speculation the Organization
of Petroleum Exporting Countries will pare crude shipments this month.On the New York MercantileExchange, light, sweet crude futures fell 0.02% to USD97.30 per barrel in Asian Friday after upsettling up 0.24% at USD97.24 a barrel on Thursday in the U.S.On Thursday, it appeared tradersfocused more on U.S. economic news than the comparable headlines out of Europe.Data showed
the euro zone’s fourth
-quarter GDP contracted by 0.6%, well below expectations for a 0.4% quarterlydecline and far surpassing the previous 0.1% contraction. It was the worst rate of contraction since2009 and the third straight quarter of negative growth. Typically, economists consider an economy tobe in recession with two consecutive negative GDP readings.
WTI Crude Oil futures gain on economy; OPEC to cutshipments
Amid reports arriving that OPEC is about to cut its crude shipments by 0.9% thismonth, WTI crude oil futures headed for its ninth weekly gain in 10 weeks. Pricesclimbed 0.3% yesterday even as the futures are up 1.8% this week. Crude oil on
India's MCX, meanwhile is a tad down in the opening hour of trade.“It is clear a better
global growth scenario is emerging and being priced into markets generally and oil in
particular,” said Michael McCarthy, a chief market strategist at CMC Markets in Sydneyto Bloomberg.“We had further evidence with the improvement in jobless claims in the
U.S. It just adds to that broader, b
etter demand scenario.” he added.Open Interest in
crude oil futures on the NYMEX jumped to the highest level since the onset of tradingon the Exchange in March 1983.The futures for delivery on March 13 was spottedtrading at $97.36 a barrel, a gain of $0.04 or 0.05% as of 10.18 AM IST. Brent futuresfor delivery on the same date in April was spotted trading at $117.94 a loss of or $0.10or 0.08% as of 10.19 AM IST.