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Morning Gold & Silver Report – 3/15/2011
By Timothy OakesMarch 15, 2011At 8:05 AM (CT) the APMEX precious metals prices were:
- Gold price - $1392.50
- Silver price - $34.13
- Platinum price - $1711.50
- Palladium price - $711.50
COMMENTARY: The major morning news continues to be the developing economic situation in Japan.The search for survivors is still on. As quarantine zones are put in place, the fear of nuclear meltdown is still prevalent. At this time the nuclear fear is on the level of Three Mile Island, but not quite to the level of Chernobyl. The big hit to industrial metals (platinum, palladium and silver) is the shut down of all automotive plants in Japan. The shut down affects the American plants as well because the parts are not being produced. The Bank of Japan has even agreed to pump almost $100 billion more into the Japanese economy to quell fears of an economic downfall.
The fears in the Middle East are still substantial as rebel forces in Libya are asking Western powers to implement a no-fly zone while Muammar Gaddafi’s forces continue to push back the rebel uprising. The other major concern now lies in the fact that Saudi Arabian troops have entered the island nation of Bahrain, to the dismay of its citizens and Iran.
With the Japanese markets impacting our own stock markets, investors are selling off their gains in precious metals to offset the losses in the global marketplace. The Nikkei (Japanese stock market) has hit its worst levels since 1987. The hedge fund sell off is hurting the efforts of the banks to try and buoy the economy at this point. There was a rise early on due to reconstruction estimates, but globally the pullout of one of the stronger world economies has wreaked havoc domestically and globally. “Today’s market moves truly show the severity of Japan's situation. It's a true market, it's not a lie or speculation. We're not talking any more about power cuts, earthquake or tsunami, we're talking about which areas will get most radioactive exposure,” said a chief trader at a Japanese securities firm.
All the news should be helping the safe haven appeal of gold in times of crisis but the sell-off is curtailing the appeal at this time.
Gold spot price is down $33.40 – Silver price is down $1.80 – Platinum spot price is down $41.80 – Palladium price is down $37.00
Crude Oil Drops as Loss of Demand in Japan Outweighs Middle East Tension
Crude oil fell to a two-week low in New York as concern that damage from Japan’s earthquake may limit crude demand outweighed speculation of supply disruptions in the Middle East.
Crude oil fell to a two-week low in New York as concern that damage from Japan’s earthquake may limit crude demand outweighed speculation of supply disruptions in the Middle East.
The reconstruction in japan especially in the nuclear plant may need a great of industrial metal such as silver.
Short term silver should move above US$100 in months to come.
Do buy some silver in the OUB silver saving account to diversify our investment.
Do vest and good luck
LONDON, March 15 (Reuters) - Gold slipped about 1 percent on Tuesday as declines in stock markets triggered by a growing nuclear crisis in Japan prompted speculators to sell bullion to cover losses.
Holdings on gold ETF fell to their lowest since May last year.
PRICES * Spot gold XAU= was bid at $1416.3 at 0736 GMT from $1426.65 late in New York on Monday.
* Silver XAG= was at $35.21 from $35.85.
* Platinum XPT= at $1722.9 from $1749.99.
* Palladium XPD= at $725 from $740.00
DATA/EVENTS
* Euro zone Q4 unemployment, 1000 GMT
* Germany March ZEW survey, 1000 GMT
* ICSC/Goldman Sachs weekly U.S. chain store sales, 1145 GMT
* New York Fed Empire State survey for March, 1230 GMT
* U.S. import/export prices for February, 1230 GMT
* Redbook weekly U.S. retail sales, 1255 GMT
MARKET NEWS
* The yen surged after Japan's prime minister said radiation levels near a quake-stricken nuclear plant had become high and the risk of further nuclear leakage was rising, prompting investors to dump risky assets. [USD/]
* Shares and other risky assets from the Australian dollar to commodities such as copper and oil slumped on Tuesday while safe-haven assets like U.S. Treasuries rallied as Japan's nuclear crisis worsened. [MKTS/GLOB]
* Brent crude fell to below $112 after explosions rocked an earthquake-stricken Japanese nuclear plant, sending Japanese equities into a tailspin as radiation levels climbed and dampening sentiment across markets. [O/R]
* European stock index futures pointed to steep losses after more explosions damaged a nuclear plant in Japan, sparking a rise in radiation levels and a sharp sell-off in Japanese stocks. [.EU]
FUNDAMENTALS
* The world's largest gold-backed exchange-traded fund,
SPDR Gold Trust (GLD), said its holdings slipped to 1,213.655
tonnes by March 14, their lowest in 10 months, from 1,215.475
tonnes on March 11. * Luxury stocks worldwide were hit by worries about the long-term sales impact of the earthquake in Japan, the third-largest luxury goods market and a major contributor to results at Hermes, Burberry, LVMH, Richemont and Tiffany.
* KazakhGold's (KZGq.L) $509 million deal to allow Russia's top gold miner Polyus Gold (PLZL.MM) to sell some of its assets to the Assaubayev family has hit an obstacle due to problems with financing.
TECHNICALS
* Gold support at $1,400 an ounce, resistance at $1,445 an ounce and 14-day RSI at 55.
* Platinum support at $1,720 an ounce, resistance at $1,786 and 14-day RSI at 34.
* Silver support at $35.50 an ounce, resistance at $36.80 and 14-day RSI at 62.
If Silver is in demand, but, physical stocks cant meet demand = price will shoot up = $50.00
Visit to dentist will be expensive if one needs that 'fiilling' be done.
The current price of gold, Exchange Rates Today March 15 2011, Precious Metals Gold Investmenthas positive numbers increasing because of the critical situation in Japan after the damage done by the earthquake and tsunami, which was subsequently reflected in a nuclear emergency situation, what has pushed ‘gold as a safe alternative investment.
The current price of an ounce of gold
The current price of an ounce of gold has positive numbers going up and contribute to a maximum of $ 1,431.89 per day $ 1,424.71 to fix the price of an ounce of gold in the New York market.
On the other hand the current price of an ounce of silver had no major variations to settle in and contribute $ 35.83 in the same way the price of an ounce of platinum fell 1.7% to contribute and settle for $ 1,747.99 per ounce ounce while palladium fell 1.6% to settle at $ 744.72 per ounce price.
Gold is safe haven as Japan grapples with catastrophe
March 14 2011 13:30 GMT
The world is still coming to terms with the terrible tragedy in Japan. A second explosion at the Fukushima nuclear reactor overnight and Pentagon reports of radiation being detected 60 miles away from the reactor suggest widening nuclear contamination leading to concerns of a nuclear catastrophe.
Gold ticked lower momentarily to $1,417.63/oz on the open in Asia prior to rising to over $1,432/oz where determined sellers sold aggressively, sending gold back down to near Friday's closing price on the London AM Fix (see chart). Silver also rose initially prior to determined selling.
Ordinarily, last week's lower silver and gold weekly close would lead to further momentum-driven liquidation but these are no ordinary times.
The catastrophe in Japan is already leading to safe haven demand for gold. Premiums for gold bars in Tokyo rose to their highest level since February. Overnight, gold bars were quoted at a premium of $1 an ounce to the spot London prices in Tokyo, up from zero last week and a discount of 50 cents two weeks ago.
In Japan, panic buying and stocking up with essentials such as food and gasoline has seen shortages developing, prices rising sharply and concerns of inflation. A bullion dealer in Tokyo said that premiums were higher as the Japanese market is a bit tight on gasoline, so there are inflation risks."
Given the European sovereign debt crisis, geopolitical instability in oil producing nations and continuing concerns about the global economy, the devastating megaquake and tsunami could not have come at a worse time both for the indebted Japanese economy and the global economy.
Japan's central bank, the Bank of Japan injected a record 15 trillion yen (US$183 billion) into money markets and eased monetary policy overnight. Japan's 10-year government bond has fallen to 1.21%, see chart above). The Bank of Japan also offered to buy 3 trillion yen (US $36.6 billion) of government bonds from lenders in repurchase agreements starting March 16. It seems likely that the Japanese authorities may have been buying bonds on Friday and today in order to keep interest rates low. The yen is slightly weaker today after Friday's strong rise.
The Nikkei fell 6.18% overnight but there were encouraging signs from other Asian markets which were resilient. The Hang Seng, CSI 300 and Kospi all eking out small gains and European indices are mixed.
Courtesy: GoldCore.Com
Ordinarily, last week's lower silver and gold weekly close would lead to further momentum-driven liquidation but these are no ordinary times.
The catastrophe in Japan is already leading to safe haven demand for gold. Premiums for gold bars in Tokyo rose to their highest level since February. Overnight, gold bars were quoted at a premium of $1 an ounce to the spot London prices in Tokyo, up from zero last week and a discount of 50 cents two weeks ago.
In Japan, panic buying and stocking up with essentials such as food and gasoline has seen shortages developing, prices rising sharply and concerns of inflation. A bullion dealer in Tokyo said that premiums were higher as the Japanese market is a bit tight on gasoline, so there are inflation risks."
Given the European sovereign debt crisis, geopolitical instability in oil producing nations and continuing concerns about the global economy, the devastating megaquake and tsunami could not have come at a worse time both for the indebted Japanese economy and the global economy.
Japan's central bank, the Bank of Japan injected a record 15 trillion yen (US$183 billion) into money markets and eased monetary policy overnight. Japan's 10-year government bond has fallen to 1.21%, see chart above). The Bank of Japan also offered to buy 3 trillion yen (US $36.6 billion) of government bonds from lenders in repurchase agreements starting March 16. It seems likely that the Japanese authorities may have been buying bonds on Friday and today in order to keep interest rates low. The yen is slightly weaker today after Friday's strong rise.
The Nikkei fell 6.18% overnight but there were encouraging signs from other Asian markets which were resilient. The Hang Seng, CSI 300 and Kospi all eking out small gains and European indices are mixed.
Courtesy: GoldCore.Com
SINGAPORE, March 15 (Reuters) - Gold inched down on Tuesday as declines in stock markets triggered by last week's devastating earthquake in Japan prompted speculators to sell bullion to cover losses, while holdings on the ETF slipped to their lowest since May last year.
FUNDAMENTALS
* Spot gold lost $2.50 an ounce to $1,424.15 an ounce by 0034 GMT, after rising as much as 1 percent on Monday as Japan battled to prevent a nuclear catastrophe after the quake and tsunami and on political unrest across the Arab World.
* U.S. gold futures for April hardly moved at $1,424.3 an ounce.
* A fresh explosion rocked a stricken Japanese nuclear power plant on Tuesday and some workers were ordered to leave the site, a sign that the situation may be getting more serious at the complex that was damaged by the massive earthquake and tsunami.
* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings slipped to 1,213.655 tonnes by March 14, their lowest in 10 months, from 1,215.475 tonnes on March 11.
MARKET NEWS
* The benchmark Nikkei average fell 4.8 percent and the broader Topix dropped 5.6 percent on Tuesday as Japan continued to deal with the aftermath of Friday's devastating earthquake and tsunami.
* The dollar fell against the yen on Monday and could test its all-time lows as Japanese insurers and companies repatriated funds to help pay claims and reconstruction costs in the wake of the country's devastating earthquake.
* U.S. Federal Reserve policymakers meet on Tuesday and investors will closely watch the Fed's assessment on unemployment and the economy in general.
DATA EVENTS (GMT)
0000 Japan BOJ rate decision Mar 2011
1000 Germany ZEW economic sentiment Mar 2011
1145 U.S. ICSC chain stores yy Weekly
1230 U.S. Import prices mm Feb
1400 U.S. NAHB housing market indx Mar
1815 U.S. FOMC rate decision Jan
Closing Gold & Silver Market Reports – 3/14/2011
By Peter LaTonaMarch 14, 2011At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,428.50
- Silver price - $35.99
- Platinum price - $1,757.00
- Palladium price - $747.90
COMMENTARY: With their strong connection to the automobile industry, it is no surprise that platinum and palladium continued their downward slide today. Japan is noted for their automobile manufacturing.Gold began the day strong and then dipped due to profit taking likely coming from Japan. Japanese investors are often long on gold, but in light of this current tragedy, they have no option but to sell gold to raise cash. US Investors will feel the effect of Friday’s earthquake on many fronts. It is being reported that US investors put over $1 Billion dollars in Japanese exchange-traded funds last month.
The Middle Eastern crisis has taken a back seat to the events in Japan, but it has not settled down. Saudi Arabia is sending troops into Bahrain to help put down protests. Some Muslim factions in Bahrain are calling this an act of war. In Libya, Qaddafi continues to carry out air strikes in Ajdabiya and continues to march east. The US and its allies are struggling to come up with acceptable measures to stop him.
Gold spot price is up $7.00 – Silver price is down 2 cents – Platinum price is down $24.10 – Palladium price is down $19.00
Gold to benefit from rising interest rates
By Andrew Mickey
In the last six weeks gold has erased all the losses from the short-lived correction. Gold is back setting new all-time highs and silver is up more than 30% in the past six weeks.
But as precious metals are adding to their gains, there are a lot of perceived headwinds coming for gold in the months ahead.
Summer’s not far away. Gold has historically lags over the over the summer months. Between 2002 and 2010 gold prices have increased an average of 0.3% in June, July, and August. Meanwhile, gold prices have risen an average of 19.7% during the other nine months.
Also, QE2 will be over in a few months. The Fed’s money printing program has kept interest rates artificially low and given a jolt to the prices of all asset classes, especially precious metals.
The combination of the summer and the end of QE2 have commodity traders’ thinking the old advice “sell in May and go away” will be the good advice once again this year.
The way things are shaping up though, gold could be poised to buck the historical trend, blow through all the selling pressure from uncertainty created by QE2’s winding down and have a very strong summer. Here’s why.Bond Buyers Wanted
Bill Gross, founder and co-CIO of PIMCO, has helped bring a critical impact from the end of Q2 to the forefront of many investors’ minds.
In his most recent monthly commentary Gross asked, “Who will buy Treasuries when the Fed doesn’t?”
Gross posed the timely question along with an image that lays out the situation perfectly:
During QE1 and QE2 the Fed had become the overwhelmingly dominant purchaser of Treasury Bonds. It’s buying accounted for 70% of all new U.S. Treasury debt issued during that time.
But with just a few months of QE2 left and a couple billion dollars of Treasury bond purchases left to make, the uncertainty of what happens when the largest buyer of Treasury bonds stops buying will have an increasingly larger impact on all markets – gold, oil, housing, stocks, bonds, etc. - as QE2 comes to an end.
Treasury Bonds: Supply Up, Demand Down
The most likely result of the end of QE2 will be higher interest rates.
The market has proven there just aren’t many buyers interested in Treasury bonds given their artificially low current yields (keeping rates low was one of the main goals of QE2).
On top of that, the Fed’s bond buying spree couldn’t be coming at a worse possible time. Individual investors have reversed their aggressive bond-buying trend and started pulling money out of bonds. Last month they ended their 22-month streak of adding money to bond funds. The $643 billion they put into funds is now starting to be withdrawn.
Now that buying demand for bonds is drying up and the most significant purchaser of Treasury bonds is pulling out, Treasury prices must go down and yields must go up to attract new buyers.
That’s just the demand side of the equation. On the supply side the U.S. government’s deficit is expected to hit another record this year.
When demand falls, supply increases, prices go down. And when bond prices go down, interest rates go up.
Rising interest rates is generally bad for stocks, housing, and economic growth. But historically it has been good for gold.
Let History Be Your Guide
The yield on the benchmark Treasury bonds must go up to attract sufficient new buyers. The rising rate trend is critically important to gold prices.
In 13 of the 14 years tracked both interest rates and average gold prices rose. The only exception was 1981, which came after a year when average gold prices nearly doubled.
Bucking the Trend
Of course, rising rates on Treasury bonds is going to have other impacts that, on the surface, would appear to be headwinds for gold prices.
For example, money tends to flow where it’s treated best. And currencies which offer higher interest yields tend to attract more buying.
The value of the U.S. dollar relative to other currencies would likely increase along with interest rates.
Also, an end of quantitative easing would signal some level of monetary sanity from the Federal Reserve which would also add strength to the dollar.
The current bull run in gold, however, has repeatedly bucked the trend of a rising dollar and has often gone up along with the dollar.
Finally, we’re looking at a relatively short time period. The start of the post-QE2 era and the weeks leading up to its end will likely be filled with a lot of uncertainty across the markets. No one really knows for sure how the end of the program will turn out and how high interest rates will go.
But despite it all, the fundamentals are lining up to be a net positive for gold. The end of the artificially suppressed long-term interest rates will likely show how strong the market believes inflation has already become. And a significant rise in non-artificially-suppressed interest rates will show that inflation is much higher than the official numbers report.
As a result, we continue to recommend moving into high-quality gold stocks with big resources and significant growth potential to ride the gold bull regardless of the short-run and likely volatile effects of the end of QE2 on gold prices.
Andrew Mickey is Chief Investment Strategist, Q1 Publishing
Gold up 1 pct on Japan quake, Tokyo premiums jump
Mon Mar 14, 2011 1:03am EDT
* Gold up 1 pct in early trade, PGMs fall
* Coming Up: Japan consumer confidence Feb 2011 0500 GMT
By Lewa Pardomuan
SINGAPORE, March 14 (Reuters) - Bullion rose as much as 1 percent on Monday as Japan battled to prevent a nuclear catastrophe after a massive earthquake and tsunami, sending premiums for gold bars to their highest level since February in Tokyo.
A badly wounded nation has seen whole villages and towns wiped off the map by a wall of water, bringing in its wake an international humanitarian effort of epic scale. More than 10,000 people are feared to have been killed.
Spot gold added $4.74 to $1,422.44 an ounce by 0429 GMT after rising as high as $1,431.89 an ounce as markets began estimating the huge economic costs caused by the disaster.
Bullion was still off a record high of $1,444.40 hit last week.
" Some investors expect some of the Japanese insurance companies to start selling their dollar assets to raise money. Perhaps gold could be boosted as an alternative currency itself," said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
" In the short term, I think gold prices will head up due to a flight to safety and investors seeking out a safe haven."
U.S. gold futures for April rose $1.2 an ounce to $1,423 an ounce.
Silver was off an intraday high. Platinum fell more than 2 percent to its weakest since early January on falling equities, putting pressure on palladium .
Both metals are mainly used in auto catalysts. Toyota Motor Co. said on Monday it had halted production nationwide until March 16 following the earthquake.
" Platinum is falling all the way down because the global economy doesn't seem to perform well," said a dealer in Hong Kong. " There's a lot of mess around," said the dealer, referring to the quake in Japan, deadly unrest in the Middle East and Europe's sovereign debt problem.
Japanese stocks fell 7.6 percent, on track for the biggest daily loss since October 2008, and bond yields rose investors expected the earthquake and tsunami that devastated the country's northeast to take an economic toll and require heavy government borrowing.
The dollar rebounded from near record lows against the yen on Monday, boosted by hedge fund buying after the Bank of Japan's injected 7 trillion yen into the money market to help ease nervousness following the earthquake.
In the physical market, premiums for gold bars jumped to their highest since February after the quake sharpened fears of inflation.
" The Japanese market is a bit tight on gasoline, so there are inflation risks. That's why Tokyo premiums are a bit higher," said a dealer at a bullion trading house in Tokyo.
Gold bars were quoted at a premium of $1 an ounce to the spot London prices in Tokyo, up from zero last week and a discount of 50 cents two weeks ago.
Japan will move quickly to import more liquefied natural gas and low-sulphur fuels to generate power at thermal plants and replace nuclear electricity supplies put out of action after the nation's worst earthquake in recorded history.
Moody's Investor Service said it was awaiting a full assessment of the damage from Japan's devastating earthquake and tsunami, but said the impact was worse than initially expected.
Premiums were steady in other parts of Asia, with no signs of an increase in buying related to the disaster in Japan. Dealers quoted premiums at $1 to the spot London prices in Singapore and at between $1 and $1.5 in Hong Kong. GOLD/ASIA1> .
" There's a small amount of buying by jewellers. They are covering stocks. I think people are just watching the development in Japan, whether there will be more tsunami or how the economy is behaving," said the dealer in Hong Kong.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust , said its holdings edged down to 1,215.475 tonnes by March 11, their lowest since May 2010, from 1,217.295 tonnes on March 7, as some investors booked profits from gold's rise to a record.
Brent crude touched a two-week low near $111 on Monday, down by nearly $3 on investor pessimism that economic growth will slow after Japan's earthquake and tsunami, while easing unrest in the Middle East threw the focus back onto ample oil supplies.
Gold Prices Rebound After Japan Quake
NEW YORK (TheStreet ) -- Gold prices reversed directions Friday and headed higher as an earthquake in Japan triggered safe haven buying.
Gold for April delivery added $9.30 to close at $1,421.80 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,423 and as low as $1,404.80. The spot gold price was adding $9.40, according to Kitco's gold index.
The worst earthquake in Japan for 140 years squeezed global markets Friday as investors tried to digest how this would affect neighboring countries, demand for commodities and curtail a worldwide economic recovery.
Gold pared earlier losses and headed higher on safe haven buying and a weaker U.S. dollar but was missing the momentum that usually accompanies any market panic.
" I believe it could be and should be ... $20 higher," says David Morgan, founder of Silver-Investor.com. Morgan speculates that the lack of a big rally in gold points to big buyers doing some big selling. " It's profit taking [and] ... there's powers in there that say 'you know we don't want gold any higher.'"
Morgan is now forecasting a wide range for gold from about $1,320 to $1,420 an ounce.
There were other factors preventing a huge rally in gold Friday. Although the death toll was rising in Japan, the country's sophisticated infrastructure is helping it manage the damage. Also, after the Dow Jones Industrial Average saw an almost 2% selloff Thursday, investors were looking for any chance to buy. Betting on material, construction, and energy stocks as Japan will now be forced to rebuild parts of its country also distracted investors away from the safety of gold.
Gold fell back from a record high of $1444.95 to mark the first weekly decline since the end of January, and the short-term reversal may gather pace going into the middle of March as global investors diversify away from the bullion.
As the precious metal breaks out of the upward trending channel from back in January, prices look poised to push lower in the days ahead, and the bearish divergence in the relative strength index certainly reinforces a weakened outlook for future prices as the near-term rally tapers off ahead of $1450. In turn, the flight to safety is likely to spur increased demands for the U.S. dollar, and gold prices should trend lower throughout the remainder of the month as the rebound in the greenback gathers pace.
However, with the Federal Open Market Committee scheduled to announce its interest rate decision next week, dovish comments from the central bank could generate a bearish reaction in the reserve-currency, and gold may regain its footing following the meeting as Chairman Ben Bernanke maintains his pledge to keep borrowing costs close to zero for an ‘extended’ period of time. At the same time, the Fed may keep the door open to ease monetary policy further in 2011 in order to combat the protracted recovery in the labor market, and the rebound in the U.S. dollar could be short-lived as market participants speculate the FOMC to carry out another round of quantitative easing later this year. Nevertheless, the Fed may strike an improved outlook for the real economy as private sector activity accelerates, and the central bank may drop its dovish tone as rising energy prices raises the risk for inflation. In turn, the statement accompanying the rate decision is likely to generate increased volatility across the financial markets as investors weigh the prospects for future policy.- DS
//// DailyFX
NEW YORK (Commodity Online) : Global oil prices plunged as commodity markets across the globe reeled under the impact of the powerful earthquake and tsunami that shocked world’s third largest economy, Japan.
Light sweet crude for April delivery ended trading at $101.16 a barrel after hitting as low as $99.01 a barrel earlier in the day.
London’s Brent crude futures for April delivery fell $1.59 to settle at $113.84 a barrel, losing 1.8 percent on the week.
However, gold took a somersault on its way to finish higher for the week after traders began safe haven buying following japans’ devastating tsunami.
Gold futures for April delivery rose $9.30, or 0.7 per cent, to settle at $1,421.80 on the Comex in New York, the biggest gain for a most-active contract since March 4.
The precious yellow metal climbed the most in a week as Japan’s earthquake impact boosted it safe haven appeal already up by tensions in the Middle East and North Africa.
Meanwhile, Silver futures for May delivery gained 86.9 cents, or 2.5 per cent, to $35.935 an ounce. This week, the price gained 1.7 per cent, the seventh straight gain and the longest rally in three years. The metal has more than doubled in the past 12 months.
Analysts expect the black gold to fall further during next week as they see Japan cutting crude imports and also on chances of follow up tsunamis in coming days. Japan is the world’s third- largest oil user.
On the other hand, heating oil and gasoline futures held up better than crude, receiving support from expectations that Japan will require more fuel imports after the quake and tsunami affected about a fifth of its capacity.
Japan on Friday closed most of its refineries other industrial facilities in the affected areas as the Nippon nation scrambled to reduce pressure in two nuclear plants damaged due to quakes.
Analysts said impacts from protests, though thinner, in Saudi Arabia were offsetted by Japanese tsunami and resulted in sharp declines in oil and gains for gold.
A day after the devastating quake, japan said it was still too early to grasp the full extent of damage or casualties. The confirmed death toll so far is almost 300, though media reports say it is at least 1,300.
Light sweet crude for April delivery ended trading at $101.16 a barrel after hitting as low as $99.01 a barrel earlier in the day.
London’s Brent crude futures for April delivery fell $1.59 to settle at $113.84 a barrel, losing 1.8 percent on the week.
However, gold took a somersault on its way to finish higher for the week after traders began safe haven buying following japans’ devastating tsunami.
Gold futures for April delivery rose $9.30, or 0.7 per cent, to settle at $1,421.80 on the Comex in New York, the biggest gain for a most-active contract since March 4.
The precious yellow metal climbed the most in a week as Japan’s earthquake impact boosted it safe haven appeal already up by tensions in the Middle East and North Africa.
Meanwhile, Silver futures for May delivery gained 86.9 cents, or 2.5 per cent, to $35.935 an ounce. This week, the price gained 1.7 per cent, the seventh straight gain and the longest rally in three years. The metal has more than doubled in the past 12 months.
Analysts expect the black gold to fall further during next week as they see Japan cutting crude imports and also on chances of follow up tsunamis in coming days. Japan is the world’s third- largest oil user.
On the other hand, heating oil and gasoline futures held up better than crude, receiving support from expectations that Japan will require more fuel imports after the quake and tsunami affected about a fifth of its capacity.
Japan on Friday closed most of its refineries other industrial facilities in the affected areas as the Nippon nation scrambled to reduce pressure in two nuclear plants damaged due to quakes.
Analysts said impacts from protests, though thinner, in Saudi Arabia were offsetted by Japanese tsunami and resulted in sharp declines in oil and gains for gold.
A day after the devastating quake, japan said it was still too early to grasp the full extent of damage or casualties. The confirmed death toll so far is almost 300, though media reports say it is at least 1,300.
LONDON, March 11 (Reuters) - Gold edged up on Friday after a major earthquake struck northeast Japan and worries about further unrest in the Middle East underpinned safe-haven demand.
PRICES * Spot gold XAU= was bid at $1,416.9 at 0737 GMT from $1,412.59 late in New York on Thursday.
* Silver XAG= was at $35.35 from $35.25.
* Platinum XPT= at $1768.99 from $1760.24.
* Palladium XPD= at $763.97 from $765.50
DATA/EVENTS
* UK producer prices for February, 0930 GMT
* U.S. retail sales for February, 1330 GMT
* Thomson Reuters/Univ of Mich prelim March consumer sentiment, 1455 GMT
* U.S. business inventories for January, 1500 GMT
* U.S. ECRI weekly, 1530 GMTMARKET NEWS* The yen fell broadly and slumped to a two-week low against the dollar on Friday after a major earthquake struck Japan and triggered a slide in Japanese shares.* European stock index futures pointed to a lower open on Friday, extending the previous session's selloff as investors digested news of a strong earthquake that hit Japan.* Asian shares dropped after a massive earthquake hit Japan, including the capital Tokyo, darkening an already bleak mood caused by weak economic data and unrest in Saudi Arabia.* Brent crude fell $2 towards $113 on Friday as a quiet start to the planned " day of rage" in Saudi Arabia eased concern that unrest would spread in the world's top oil exporter, prompting investors to unwind positions.FUNDAMENTALS* Jewellers in India, the world's largest gold consumer, were buying the metal to cover wedding-season needs but in small quantities as prices held near record levels, while scrap sales subsided in other parts of Asia, dealers said* China produced 42,530.3 kg of gold in February, 18.8 percent less than a year earlier, figures from the National Bureau of Statistics showed.* With silver prices expected to continue to rise over the next few years, Silver Wheaton (SLW.TO) sees the possibility of paying out around half its cash flow each year in dividends, its chief executive said.TECHNICALS* Gold support at $1,400 an ounce, resistance at $1,445 an ounce and 14-day RSI at 56.* Platinum support at $1,720 an ounce, resistance at $1,82 and 14-day RSI at 40.* Silver support at $34.50 an ounce, resistance at $36.80 and 14-day RSI at 65.
Spot gold will fall more next week to a range of $1,360 to $1,376 per ounce based on its wave pattern and a Fibonacci retracement analysis, according to Wang Tao, who is a Reuters market analyst for commodities and energy technicals.
SINGAPORE, March 11 (Reuters) - Gold ticked up on Friday after reports of police firing on protesters in Saudi Arabia ignited fears of further Middle East unrest, but bullion was on track for its biggest weekly decline since late January, down more than $20 from a lifetime high hit at the start of the week.
Saudi police fired in the air to disperse protesting Shi'ites and three people were injured on the eve of a day of protests called for Friday by activists using the Internet, while protests were planned in other Gulf countries such as Yemen, Kuwait and Bahrain.
The time after Friday prayers has proved to be crucial in popular uprisings in North Africa and the Middle East which have brought down Tunisian and Egyptian rulers who once seemed invulnerable.
Gold added $3.30 to $1,415.89 by 0309 GMT, but a surging U.S. dollar was likely to cap gains. Gold hit a record of $1,444.40 on Monday, when investors poured money into bullion as oil jumped on violence in Libya and after the downgrade of Greece's credit rating reignited worries about euro zone sovereign debt.
" We are waiting for some escalation in the situation within Saudi. If protesters become more aggressive in some way, you might find see more buying but again, it's being pressured on one side by the dollar," said Darren Heathcote, head of trading at Investec Australia in Sydney." On the one side, we've got, probably, downward pressure as a result of a stronger dollar and a bit of flight to safety going on. On the other hand, gold's attractiveness as a safe haven would probably increase, given the uncertainties surrounding Middle East and particularly what's going on in Saudi."U.S. gold futures for April rose $3.9 to $1,416.4 an ounce. The contract hit record at $1,445.70 on Monday.
Closing Gold & Silver Market Report –3/10/2011
By Peter LaTonaMarch 10, 2011At 4PM (CT) the APMEX precious metal prices were:
- Gold price - $1,412.30
- Silver price - $35.34
- Platinum price - $1,766.20
- Palladium price - $770.00
COMMENTARY: Today was one of those days that the strong pull of the equity markets sinking, dragged precious metal prices down as well. Generally speaking, news like Gaddafi stepping up attackswould cause movement from riskier investments like stocks to safe havens like gold, but not today. They both went down. Other news such as Moody's cutting Spain’s debt rating, which further fanned Euro debt fears would also drive precious metal prices up. It just goes to show that you cannot ever use words like always or never when it comes to market predictions. Tomorrow could be an interesting trading day for precious metals, as this news gets more thoroughly dissected and digested.
Gold spot price was off $18.30 – Silver price was down 78 cents – Platinum spot price was off $36.80 – Palladium price was down $12.70
Morning Gold & Silver Market Report – 3/10/2011
By Peter LaTonaMarch 10, 2011
At 8AM (CT) the APMEX precious metal prices were:
- Gold price - $1,420.10
- Silver price -$35.36
- Platinum price -$1,779.90
- Palladium price -$768.50
COMMENTARY:Gold and silver prices are dipping in early morning trading despite continued concerns about conflicts in the Middle East and the European debt problems. Many would think that gold and silver’s safe haven appeal would be driving prices up. President Gadaffi has stepped up military actionas he has ordered jets to strike even deeper into rebel territory. Moody’s announced that they are now cutting Spain’s debt rating by one notch. This cut drove the Euro down and thus the US dollar up, but as Alan Greenspan said last week on CNBC, they are both weak currencies so comparisons between the two have a diminished value.
There was also news on the home front that often spike precious metal prices. Surging oil prices helped push imports up to the fasted pace in 18 years, while on the job front, the number of people seeking employment benefits rose last week. Futures in the stock market are falling which more often than not indicates a positive trend for gold and silver. Let’s see what the trading day brings.
Gold spot price is down $10.50 – Silver price is down 76 cents – Platinum spot price is down $23.10 – Palladium price is down $14.20
Gold stays lower despite oil gains March 10, 2011 at 11:40
SINGAPORE (Commodity Online) : Gold steadied Thursday as some investors continued to take advantage of high prices by selling holdings.
Spot gold was seen trading at $1428.57 an ounce at 12.30 p.m Singapore time while April-delivery contract on the comex in Nymex was little changed at $1,428.90 an ounce.
Analysts however said the precious yellow metal is likely to come back during the day as violence in the MENA region continued to support its safe haven appeal.
They added that traders remain focused on mounting unrest in the region and also on renewed concerns about euro zone debts.
Gold rallied 30 percent last year as investors bought the metal to protect their wealth against the prospect of inflation and currency debasement. The metal climbed to an all-time high of $1,444.95 on March 7.
Cash silver dropped 0.2 percent to $36.0625 an ounce. The metal climbed to $36.7525 on March 7, the highest level since 1980.
Meanwhile holdings in the world's largest silver exchange-traded fund struck a record high, reflecting greater interest in the relatively cheaper precious metal.
Palladium for immediate delivery lost 0.2 percent to $780 an ounce and platinum shed 0.2 percent to $1,798.35 an ounce.
On Wednesday, gold for April delivery closed up $2.40 at $1,429.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,436.80 and as low as $1,423.20.
Silver prices settled 39 cents higher at $36.04, marking a 31-year high.