Commodities moved sideways in European sessions, although the debt agreement of Greece sent stocks higher. Gold price continued hovering around 1750, lacking the momentum to climb higher as physical demand remained weak with the drop in Indian buying. Oil prices also changed little as investors continued to concern about the US fiscal cliff. After all, the Greek deal does not mean that the debt-ridden country would be able to meet the preset fiscal targets, let alone resolving the sovereign debt crisis.
UK’s GDP grew +1% q/q in 3Q12, up from +0.6% in the prior quarter. On annual basis, the economy contract -0.1%, following a -0.5% decline in 2Q12. It’s reported that Mark Carney will succeed Mervyn King as BOE’s Governor from July 2013, signaling the UK needs someone outside of the country to help stimulate the economy. In the US session, durable goods orders probably slid -0.6% in October, after gaining +9.9% in September. Excluding transportation, durable goods might have dropped -0.6%, down from +2% a month ago.
Commitments of Traders:
Speculators were mixed towards the energy complex in the week ended November 20. Net length for crude oil futures gained +112 contracts to 177 879 while that for heating oil slipped -3 172 contracts to 18 808. Net length for gasoline rose +3 910 contracts to 68 381. Net short for natural gas slipped -3 910 contracts to 81 677.
With the exception of platinum, speculators were also bullish towards precious metals during the week. Net length for gold future rose +9 221 contracts to 180 815 while that for silver futures added +3 551 contracts to 37 961. For PGMs, net length for platinum slid -1 537 contracts to 34 418 while that for palladium climbed +1 392 contracts to 11 278.
Oil and Gold Reports contributed by Oil N' Gold