Asia looks at Gold, Silver and Crude Oil Trade

US Gold futures prices finished pit trade Thursday a bit lower and near the middle of the day's trading range in choppy action.

Weak US economic data and worries about the EU had the market edgy on Thursday limiting buying interest in precious metals.

There was some safe-haven investment demand Thursday, as the Gold market did not perform badly given the risk off trading POV on the day. The Gold market saw some consolidation on the daily bar chart.

Aug Gold last traded off 2.70 at 1,563.00 oz.

Spot Gold was last quoted off 0.40 at 1,562.75 oz.

Jul Comex Silver last traded off 0.233 at 27.75 oz.

There were weaker-than-expected US economic reports issued Thursday; rising weekly jobless claims and a tepid gross domestic product (GDP) estimate for Q-2 added to a recent string of weak US economic data that is making for increasing speculation the US Federal Reserve may do another round of QE. Such would be arguably commodity market Bullish.

US 10-yr T-Notes hit a record low yield below 1.6% Thursday, to underscore the investor risk aversion in the market.

The latest news headlines coming out of the European Union sovereign debt crisis included rumors that the International Monetary Fund (IMF) may provide a bailout package for Spain.

Economist Shayne Heffernan of Market Outlook

Also, the European Central Bank (ECB) chief Draghi has reiterated he wants comprehensive banking union in EU.

Not to be taken lightly, St. Louis Federal Reserve president Bullard said in a speech in Japan overnight that the EU debt crisis is grave and said EU leaders must act to prevent a major meltdown of the World economies.

Mr. Bullard also said he is worried about the economic slowdown in China. When a major US banker and economist says such things, it underscores how close the World could be to a major debt/financial contagion and/or economic calamity.

The main data point of the week is the US jobs report due out on Friday morning. Trading in many markets could be more subdued ahead of that report, and then turn more active in the aftermath of the report. The key non-farm payrolls figure in the jobs report is expected to have gained around 150,000 in May.

The USD index is near steady in choppy action Thursday on profit taking after hitting a nearly two-year high on Wednesday. The dollar index bulls still have upside near-term technical momentum.

Nymex Crude Oil futures were lower and hit a 7 month low of 85.86 bbl. Crude Oil remains in a Bearish overall fundamental and technical mode in here.

The London PM Gold fixing was 1,558.00 vs. the prior London PM fixing of 1,540.00.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.Read the Terms of Service