Gold updates rose after two days of sharp declines, as tumbling European and US equity markets on talk that Germany might enact a short-selling ban prompted investors to buy bullion as a safe haven. Early in the session, bullion dropped from record highs, as funds liquidated positions due to CME Group’s 2nd margin hike this month and technical weakness. Many market watchers remained long-term bulls on gold although they said the precious metal could correct further after rising as much as $400 since July on speculation the Fed this week would announce new plans to stimulate a sluggish US economy.
Silver price rose reversing from its sharp decline along with gains in base metal and gold prices after release of unemployment claims data. The turnaround came as U.S. equity indexes hit their lows, with the Dow Jones Industrial Average recently down 169 points at 11151, as worries about the pace of global growth outweighed the boost to sentiment from Warren Buffett’s $5 billion investment in Bank of America.
Crude oil updates rose in the line of expectation due to concerns about Hurricane Irene’s impact on US East Coast fuel supplies and fighting in Libya. Crude supported by strong gains in gasoline and heating oil futures as the market kept a close watch on powerful Hurricane Irene, which threatened East Coast refineries.
The storm was forecast hitting the US eastern seaboard by the weekend was closely monitoring its track but has yet to carry out any traffic restrictions on the Harbor. In Libya, rebels stormed Tripoli’s one of the main holdouts of forces loyal to Gaddafi after a NATO airstrike on a building in the area. Markets are concerned about the speed at which the OPEC nation’s oil exports can be returned to markets.
Copper updates jumped nearly 2% to close at a 3-week high, as confidence in Asian economic growth prospects and speculation that the Fed Reserve could stand ready to support the ailing US economy powered prices higher. Stronger dollar help copper to climb for a 3rd straight day, as investors shifted their focus to an overnight rally in Asian markets and the surprising strength in shares of some banking heavyweights, which signaled to some that the world’s largest copper buyer was on firmer economic footing than its Western counterparts.
Zinc updates yesterday traded with the positive node and settled 2.11% up at 101.75 trakcing LME zinc prices overnight continued rising steadily and broke through USD 2,200/mt at noon. According to data from US Department of Labor announced on Thursday, the US initial jobless claim in the week ending on August 20 surged to 417,000, higher than previous estimation of 405,000, pushing up the US dollar index to 74.3.
But speculations of a bracing results of the meeting this evening by the US Fed boosted LME zinc prices to finally close at USD 2,230/mt, up USD 56/mt.Market expectation and response towards Ben Bernnake’s speech will dominate market movement on Friday when Ben Bernnake will delivery important speech.
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