Comex Report 06th Feb, 2014

Global Research Limited

06th February, 2014

Report Report COMEX COMEX


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DATE TIME: IST DATA PRV EXP

06.02.14

Global Economic Data

06th February,2014

IMPACT

Trade Balance

Trade Balance7:00 P.M

Difference in value between imported and exported goods and services during the reported

month;Measures

Released monthly, about 35 days after the month ends;Frequency

Actual > Forecast = Good for currency;Usual Effect

FF Notes

Bureau of Economic Analysis (latest release)Source

-34.3B -35.8B

Mar 7, 2014Next Release

A positive number indicates that more goods and services were exported than imported;

STRONG

06.02.14 Unemployment Claims 7:00 P.M 348K 337K STRONG

Why TradersCare

Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers;

06.02.14 Prelim Nonfarm Productivity q/q7:00 P.M 3.0% 2.8% MEDIUM

06.02.14 Prelim Unit Labor Costs q/q7:00 P.M -1.4% -0.7% MEDIUM



06th February,2014

Unemployment Claims

The number of individuals who filed for unemployment insurance for the first time during the

past week;Measures

Released weekly, 5 days after the week ends;Frequency

Actual < Forecast = Good for currency;Usual Effect

FF Notes

Department of Labor (latest release)Source

Feb 13, 2014Next Release

This is the nation's earliest economic data. The market impact fluctuates from week to week - there tends to be more focus on the release when traders need to diagnose recent developments, or when the reading is at extremes;

Why TradersCare

Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy;

Also Called Jobless Claims, Initial Claims;



06th February,2014

Gold advanced overnight to open at 1266.50/1267.50. Immediately after open it surged to a high of 1273.75/1274.75

following U.S. ADP data that showed a decline in national employment. The metal then dropped to a low of

1251.75/1252.75 while global equities moved higher after U.S. non-manufacturing data indicated a pickup in growth in the

services sector. It closed the day at 1256.50/1257.50.

Gold's intraday rally today met resistance ahead of the 1278 level, and the metal closed only moderately higher at 1257.

Gold will need to make a clean break through 1278, with momentum, to shift our view out of neutral. RSI has picked up

slightly at 55.18, but still needs to breach the previous high of 62.

Gold rallied after data showed that U.S. non-farm private employment rose less-than-expected in January, fuelling concern

over the labor market.

Fed said it will keep a close eye on economic indicators before deciding to wind down its stimulus program even further.

Data firm Markit said growth in the U.S. services sector quickened to a four-month high in January and hiring remained

robust

Silver moved higher overnight to open at 20.02/20.07. Shortly after open it climbed to a high of 20.30/20.35; then declined to a low

of 19.73/19.78, prior to concluding the session at 19.81/19.86.

Silver made a big move higher intraday, breaking through a daily downtrend that has been in place since August 2013. However,

the metal was not able to hold onto all of the gains, closing at 19.86, just shy of the downtrend resistance line which currently

comes in at 19.95. Nevertheless, the test of the downtrend was encouraging. We will need to see a break of the range high, 20.64,

or the range low, 18.84, to shift our view from neutral.

The gold-silver ratio had another big down day today, currently at 63.27, breaching 63.50 which was the 61.8% retracement of the

last downtrend (July-August 2013). This opens up a test of 62.28, the 50% retracement level. There is support from the long-term

uptrend at 61.58.

Silver gained as mixed U.S. data left investors uncertain over the pace of recovery in the world's largest economy.

Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 175,000 last month.

Holdings at ishares silver trust dropped by 0.04% i.e. 4.38 tonnes to 10090.68 tonnes from 10095.06 tonnes.

Gold

Silver

Global Research Limited06th February,2014


Crude

Copper

The March contract last traded at USD3.212 a pound during European morning hours, up 0.6%.

Copper prices settled Tuesday's session 0.27% higher to end at USD3.192 a pound. Futures were likely to find support at USD3.175 a

pound, the low from February 3 and resistance at USD3.230 a pound, the high from January 31.

Investors looked ahead to key U.S. economic data later in the day for further indications on the strength of the economy and the future

course of monetary policy.

The U.S. is to release the ADP report on private sector job creation, which leads the government's highly-anticipated nonfarm payrolls

report by two days, while the ISM is to publish a report service sector activity.

Copper prices have been under heavy selling pressure in recent weeks as mounting concerns over the global economy dampened

demand for growth-linked assets.

Copper futures advanced for the second consecutive session on Wednesday, as investors awaited the release of a U.S. jobs report

later in the day.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded in a range between USD3.192 a

pound and USD3.216 a pound, the highest since January 31.

On Wednesday the New York-traded oil futures hit a session low of USD97.24 a barrel and a high of USD97.50 a barrel to settle at

USD97.32 a barrel. Nymex oil futures were likely to find support at USD96.27 a barrel, Monday's low, and resistance at USD98.58 a barrel,

the high from Jan. 30.

The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 440,000 barrels in the

weekended Jan. 31, missing market expectations for an increase of 2.30 million barrels.

Total U.S. crude oil inventories stood at 358.1 million barrels as of last week.

The report also showed that total motor gasoline inventories increased by 505,000 barrels, compared to forecasts for a gain of 1.48 million

barrels, while distillate stockpiles declined by 2.36 million barrels compared to market forecasts for a drop of 1.58 million.

The data softened oil prices as some were hoping for more bullish figures, through better-than-expected data out of the U.S. service sector

kept prices in positive territory. The Institute for Supply Management reported that its services purchasing managers' index came in at 54.0

in January, up from 53.0 in December.

Analysts had expected the index to rise to 53.7, which drew applause in energy markets by painting a picture of a more robust U.S.

economy, one that will demand more fuel and energy going forward.

The employment component of the index rose to its highest level since November 2010.

The data eased concerns over a possible slowdown in U.S. recovery after Monday's ISM manufacturing index showed that activity slumped

to a seven-month low in January, which was partially the product of rough winter weather...

Nymex crude oil prices rose during Asian trading on Thursday after a rather neutral supply report disappointed those hoping for a bullish

surprise, though the commodity remained in positive territory due to a solid U.S. service-sector barometer.

INDEX ROLLOVER


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Technical levels

Support1 Support2 Resistance1 Resistance2

GOLD 1249 1240 1269 1281

SILVER 19.18 18.95 20.28 20.75

COPPER 3.1770 3.1655 3.2080 3.2275

CRUDE 96.70 96.02 98.16 98.94

Comex Report 06th Feb, 2014

Economy & Finance

Transcript of Comex Report 06th Feb, 2014