BULLION
Gold prices were stuck in ranges on the penultimate trading day of the week as investors braced themselves ahead of the US non-farm payrolls. US economic data releases on Thursday showed improvements with unemployment claims falling for the second consecutive week and factory orders and durable goods orders showing positive figures too.

However, the expectation for the non-farm payrolls to decline kept the sentiments unchanged and the yellow metal remain well supported. Gold futures for December delivery climbed $5.30 from the previous day to $1,253.40 an ounce, the highest finish since late June.

In addition, the European Central Bank maintained the interest rates at 1 percent, the lowest level ever, to boost the ailed economies in the region. The lower interest rates maintained also improves prospects of the yellow metal as an alternate investment. According to the World Gold Council the investments in the gold backed exchange traded fund was the second highest ever during the last quarter.

ENERGY
Crude oil prices ended with gains on Thursday following better than expected economic signals from US, the biggest consumer of the commodity. Fall in unemployment claims and rising durable goods orders kept the sentiments in the stock markets, and resulted in it attracting buyers in crude oil as well.

In addition, the news of a fire in an oil platform in the US Gulf of Mexico, which accounts more than 20 percent of US oil production, helped the market up yesterday. Crude for October delivery added $1.11 to $75.02 a barrel on the New York Mercantile Exchange. However, the inventories of crude oil continued to climb. The Energy Information Administration of US showed yet another climb in stocks of crude oil last week.

Natural gas price remain steady with a negative bias as the Energy Information Administration of US showed yet another climb in stocks. Inventories increased by 54 billion cubic feet to about 3.106 trillion cubic feet last week. The total was 6.3 percent lower than year-ago levels but about 5.8 percent more than the five-year average.

Natural gas for October delivery fell 5.4 cents, or 1.4 percent, to settle at $3.762 per million British thermal units on the New York Mercantile Exchange. Gas has fallen 32 percent this year on speculation that stockpiles will reach near record highs by the end of October. U.S. gas inventories at the end of October will climb to 3.752 trillion cubic feet, according to the Energy Department. Stockpiles rose to a record 3.84 trillion in November 2009.

BASEMETALS
Base metals prices were well supported yesterday following the positive sentiments in the stocks markets, which represents riskier asset class. The economic signals from US, the second largest consumer of copper, were encouraging, resulting in it attracting buyers in base metals.

However, the market awaited the highly anticipated US non-farm payrolls for a clearer picture of the economic conditions. The non-farm payrolls data is expected to show a decline, if so the risk appetite among investors will plummet and stocks and commodities are likely to be weighed down.

Courtesy: JRG Commodities Research

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