Review precious metals market for 11.08.09

Dynamics

On Tuesday 11 August, at the tender precious metals traded in a fairly narrow range because of the trading band for the dollar in the FOREX market because of expectations of the Fed meeting on interest rates, but also because of the negative trends in stock markets.

As a result of trades on the COMEX, division New York commodity exchange (NYMEX), quotes on gold rose by 0.70 to 947.60 dollars per troy ounce, the price of silver fell 1 cent to 14.34 dollars per ounce.

Causes

On Tuesday 11 August, bids for the precious metals market showed resistance range. The background for this was a mixed trading against the dollar in the currency market FOREX. Published data for industrial production of China, as well as productivity in the United States does not have adequate exposure to the market. The focus of market participants is a two-day meeting of the Fed. Fedrezerv is expected to keep rates at record low levels. However, of particular interest will cause a subsequent statement by the regulatory body on the situation in the economy, inflation and an exit strategy from the current incentive programs.

From the news, you can mark messages AngloGold Ashanti Ltd, the largest gold producer in Africa, that next week may reopen closed after an accident with a mine Tau-Ton. AngloGold output in the second quarter was below expectations due to stop mining in accidents to employees. During this period, the mining company were killed eight workers. In the second quarter the company produced 1.13 million ounces of gold. At the mine Tau Ton was 61 thousand ounces of gold.

What to expect?

considerable support precious metals at this time provides the technical picture, namely the strong levels of support, which stalled quotes. The negative situation in the neighboring markets in the coming days could dramatically change the positive view of emerging macro-economic data, which in turn positively affect the market for black gold.

What is fear?

One of the strongest factors that can adversely affect the market for precious metals, continues to be the situation with the dollar in the currency market FOREX, namely the reaction of market participants at the Fed statement after a two-day meeting. The negative trend of stock sites only reinforce the pressure on precious metals.

Overview of the oil market for 11.08.09

Dynamics

Quotations in the oil market on Tuesday 11 August, has fallen in price due to reduction in the indices for the U.S. stock markets, as well as in anticipation of data on the stocks of the Institute of Oil and Ministry of the United States.

At the New York Stock Exchange NYMEH cost of the September futures for U.S. light crude oil fell to 1.15 dollars and its price, therefore, amounted to 69.45 dollar per barrel.

At the ISE Stock Exchange in London, the cost of oil brand Brent fell by 1.04 to 72.46 dollars per barrel.

Causes

On Tuesday, August 11, quotes in the market of black gold fell in price, as is expected to increase its reserves for the past week, evidence of which will be published in a report the U.S. Department of Energy, and the decline in share prices on stock markets have increased the activity of sales oil traders. Most active sales were observed in the U.S. session, after the closure of which was published the report of the American Petroleum Institute, have shown that in the week ended August 7, oil reserves in the United States declined by 1.42 million barrels to 348.5 million barrels.

news worth noting that the Organization of Petroleum Exporting Countries (OPEC) on Tuesday lowered the forecast of demand for crude oil produced by its participants, in the coming year in anticipation of growth in supply from outside OPEC and low rate of recovery of world economy . Cartel expects that next year the demand for output in the OPEC oil to decline by 480 thousand barrels per day to 27.97 million barrels a day. Earlier, OPEC predicted decline in the 380 thousand barrels per day. The supply from countries outside of OPEC, will grow to 430 thousand barrels per day, the organization predicts. The previous forecast included an increase of 330 thousand barrels per day. OPEC has not changed the forecast of world oil consumption in 2009-2010, implying a decrease of 1.65 million barrels a day this year and increase by 500 thousand barrels per day - next year.

What to expect?

The main positive factor in today's trading session was the way the official report on stocks of petroleum products from the Ministry of the United States, where analysts expect the stocks fell by 1 million barrels. During the previous two weeks, the U.S. Ministry of Energy reported an increase in oil reserves.

What is fear?

negative side for the black gold is a statement of OPEC to lower oil demand next year, and the possible strengthening of the dollar after the announcement of a decision on the interest rate the Fed, and his subsequent comments.

non-ferrous metals market review for 11.08.09

Dynamics

On Tuesday 11 August, at the tender quotes for non-ferrous metals continued to decline moderately in the background of negative trends in adjacent markets and stock markets.

At the London Metal Exchange LME aluminum closed at a price of 1953 dollars per ton.

Copper at the close of the Exchange cost 6135 dollars per ton.

Nickel in the tender price was 20170 dollars per ton.

Causes

On Tuesday 11 August, non-ferrous metal market showed a slight decline. The main drivers of this decline have become pessimistic sentiment among market participants, who prevailed on the U.S. stock market due to the deterioration of the securities of banking sector in anticipation of the Fed meeting, as well as adjacent markets, namely the fall of quotations in the market of black gold.

news worth noting that the global economic crisis has affected the national mining industry of Spain, but the recovery in copper prices on the world market is somewhat softened the impact. At the copper mines of Las Cruces in Spain, owned by the company Inmet Mining Corp (70%) and Leucadia National Corp (30%), mining works commenced in April 2009, following the lifting of the ban imposed on the company in May 2008 . because of problems with water supply. Las Cruces - one of the world's copper mines, where the mined ore with high content of copper. The average annual productivity of the company - 72 thousand tons of copper a year, the availability of reserves is 15 years. High concentrations of metals in ore and metal extraction of modern technology, according to Inmet, may allow Las Cruces to become one of the most low-cost copper companies in the world.

What to expect?

According to some analysts, the rise in the stock market may resume after the meeting of the Fed, or rather to break the comments after the announcement of the interest rate, which in turn supports a positive signal to the market of non-ferrous metals.

What is fear?

A particularly interesting fact is the continued fall of the index Baltic Dry Index (index of freight rates), which during the week fell to a minimum level since May of this year, and it shows negative trends in the market of non-ferrous metals.

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