Copper Futures Fall as Fed Holds Back

On June 22, 2012, in Copper Futures News Report, by Infinity Trading

June 20st, 2012

Copper futures fell Wednesday on disappointment over the Federal Reserve’s modest accommodative measures and concerns about the central bank’s downbeat economic outlook.

The most actively traded contract, for July delivery, settled 4.60 cents, or 1.3%, lower at $3.3875 a pound on the Comex division of the New York Mercantile Exchange.

Copper futures retreated as investors who had hoped to see aggressive stimulus action were disappointed by the Fed. The central bank extended what is known as the “Operation Twist” program aimed at lowering long-term interest rates and encouraging borrowing and investment, which was set to expire in June.

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June 22nd, 2012

Gold futures are set to gain for the first time in five days in New York, cutting the biggest weekly loss in more than a month, as concern about Europe’s debt crisis spurs demand for a protection of wealth.

German business confidence fell to a two-year low in June, data today showed, while Spain’s 10-year borrowing costs rose above the 7 percent level this week that prompted Greece, Ireland and Portugal to seek international rescues. The Federal Reserve extended Operation Twist on June 20, an economic stimulus plan to buy longer-maturing debt, while refraining from additional purchases, and cut its forecast for 2012 U.S. growth.

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June 19th, 2012

Gold futures may climb on speculation that the Federal Reserve will take more steps to boost economic growth and as a weaker dollar increased the appeal of the precious metal as an alternative investment.

The Fed begins a two-day meeting today amid prospects that policy makers will consider further monetary easing steps to sustain the U.S. economy. The dollar declined as much as 0.4 percent against a basket of currencies. Holdings in gold-backed exchange-traded products increased 6.1 metric tons to 2,399.72 tons, the biggest gain since March 29.

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June 15th, 2012

Commodity Brokers – Hong Kong Exchanges & Clearing Ltd., host to the world’s fifth-largest equity market, agreed to pay 1.39 billion pounds ($2.15 billion) for the London Metal Exchange, which handles more than 80 percent of global trade in industrial-metal futures.

LME investors will get 107.60 pounds per ordinary share in cash, with a vote scheduled before the end of next month, the bourses said today. The stock traded at 4.925 pounds in July 2011, before the LME said it was considering bids. JPMorgan Chase & Co., Goldman Sachs Group Inc. and closely held Metdist Ltd. are the biggest LME shareholders.

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June 12th, 2012

Gold futures gained for the third straight session in New York on speculation that policy makers will announce additional stimulus measures to boost growth, increasing demand for bullion as a hedge against inflation.

Federal Reserve Bank of Chicago President Charles Evans said he would support a variety of measures to generate faster job growth, underscoring his preference for more stimulus actions. Spain has a “fair chance” to demonstrate its capacity to solve its banking woes after indicating it will require a bailout, Finland’s Prime Minister Jyrki Katainen said.

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June 10th, 2012

Comex gold futures ended higher on Friday reversing some of its losses encouraged by a rescue plan for the Spanish banks.

The surprisingly large amount of aid removes a huge cloud that has been hanging over financial markets, with investors fearing that a banking crisis in euro zone’s fourth-largest economy could have compounded the currency bloc’s troubles with Greece.

Investors are now looking for direction after the Federal Reserve Chairman, Mr Ben Bernanke’s lack of conviction on additional quantitative (QE3) sent shockwaves through the precious metal markets.

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June 5th, 2012

Gold Futures – Gold is stuck in the longest slump in a decade as investors shun bullion for the dollar and bonds, just seven months after Bank of America Corp. said Europe’s debt crisis would send prices to a record $2,000 an ounce.

The bank was joined by Goldman Sachs Group Inc., Morgan Stanley and Barclays Plc in urging investors to buy in December and January. Now, after gold fell 10 percent in a four-month slide through May, they say prices will rebound this year or next as the Federal Reserve shores up the world’s biggest economy by easing monetary policy and devaluing the dollar.

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June 5th, 2012

Gold futures rose in New York for the second time in three sessions on speculation that the world’s policy makers will take measures to stimulate economic growth, reviving demand for the metal as an inflation hedge.

The finance ministers and central bank governors from the Group of Seven nations plan to hold telephone discussions today before a summit of leaders from the Group of 20 in Los Cabos, Mexico. The Federal Reserve purchased $2.3 trillion of debt in two rounds of so-called quantitative easing from December 2008 to June 2011 to boost the economy, helping gold surge to a record $1.923.70 an ounce in September.

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May 31st, 2012

Commodity Futures – Revenues generated by the 10 largest banks’ commodity units slumped 33 percent in the first quarter as volatility declined, clients reduced trading and gas supplies climbed, according to Coalition, a London-based research company.

Revenues fell to a combined $2 billion from $3 billion a year earlier, Coalition said in a report. Overall revenues at the banks, including from equities, origination and advisory, declined to $51 billion from $53 billion, Coalition said.

The drop in commodity revenues reflects the challenge banks face driving income from energy and metals. Goldman Sachs Group Inc. (GS) Chief Financial Officer David A. Viniar said in April that lower volatility had reduced opportunities in the quarter. The Standard & Poor’s GSCI Spot Index of raw materials rose 6.8 percent in the smallest quarterly move since 2010.

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May 31st, 2012

Gold futures fell in New York, capping the longest monthly slump since 2000, as Europe’s worsening debt crisis and signs of a U.S. economic slowdown crimped demand for the precious metal.

Higher borrowing costs in Spain are putting pressure on Mariano Rajoy’s five month-old government to join Greece, Portugal and Ireland in seeking a rescue that would be the European Union’s biggest. First-time claims for U.S. jobless benefits rose by 10,000 to 383,000 last week, the Labor Department reported today. The Standard & Poor’s GSCI index of 24 raw materials fell as much as 1.5 percent and was headed for its biggest monthly drop since the recession in October 2008.

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