Gold and silver remain under pressure

Thursday, May 29, 2014

Asian equity markets have been fairly mixed. Japan’s retail sales fell sharply by 4.4% in April against analysts’ expectations of a 3.3% decline. The Nikkei edged slightly higher, gaining 0.07%, while the Hang Seng reversed and slid lower by 0.23%. The JPY retreated further against the USD, currently trading near 101.5.  

The Dow Jones index and S&P 500 reversed and posted small losses on Wednesday, finishing the session 0.25% and 0.11% lower. The USD index has been consolidating around 80.5 in early trade this morning, ahead of the release of key economic indicators including US GDP data for Q1 2014, weekly jobless claims and pending home sales figures for April.

Oil: Brent front month futures edged slightly higher in early trade this morning, holding near $110 per barrel amid hopes of increasing oil demand from the US. The release of the weekly DOE inventories figures this afternoon will provide an outlook regarding the levels of the US oil inventories. The API data released yesterday after the close of the trading session showed a large build of 3.5 million barrels in crude stocks and a drop of 1.4 million barrels in gasoline stocks.  

Brent Front Month

CON4 Comdty (BRENT CRUDE FUTR  J 2014-05-29 09-00-44

Precious Metals: Gold extended losses for a third straight session, hitting a fresh 16-week low as a stronger US dollar and weak physical demand from China weighed on market sentiment. Silver breached below $19, tracking the strong downside momentum in gold.  

XAU Spot- Gold

XAU Curncy (Gold Spot   $_Oz )  D 2014-05-29 09-01-02

XAG Spot- Silver

 XAG Curncy (Silver Spot  $_Oz )  2014-05-29 09-01-19

Events for today: 

1330

US

Q1

GDP

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

1500

US

Apr

Pending Home Sales

1600

US

w/e

EIA Energy Stocks

 

All times UK Local Time

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