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The Overall Fundamentals
Gold and Silver
Gold futures on the COMEX Division of the New York Merc
continued its rally Wednesday, as worries over worldwide
inflation prompted players to buy more Gold to store their
wealth. A weaker USD gave additional boost.
The most active Gold contract for June delivery rose 6.00, or
0.4%, to 1,458.5 oz.
Market analysts said that worries over inflation intensified
after the US Federal Reserve Chairman Bernanke said that
inflation must be watched "extremely closely."
The consecutive raises in the Crude Oil prices also helped
fuel the Gold market. May Crude Oil futures added 49c Wednesday
in New York, tapping 108.83 bbl the highest price in 2.5 yrs.
Players said that the weakening USD against Euro helped raise
Dollar-priced Gold market. The USD declined as much as 0.9%
against the Euro on speculation that the European Central Bank
will raise its Key interest rate this week.
Silver for May delivery also increased 20.4c , or 0.52%, to
39.387 oz. and July Platinum added 1.0 or 0.06%, to finish at
US Crude Oil price rose Wednesday and hit a new high since
September 2008 on the Middle East tension and a weaker USD,
brushing aside increased US domestic Crude inventories reported
In Libya, battles between Libyan leader Muammar Gaddafi's
forces and the rebels continue, in Bahrain, firms have fired
hundreds of mostly Shi'ite Muslim workers who went on strike to
support pro-democracy protesters.
The European Central Bank is expected to raise interest rates by
0.25% Thursday for the 1st time since the financial crisis hit.
The expectation pushed the euro to a 14 mo. high but pulled the
Dollar Index lower. A weaker "Greenback" usually raises Crude Oil
On the Supply Side: members of the Organization of the
Petroleum Exporting Countries (OPEC) say they have no intention
to raise output. OPEC said Wednesday at a conference in Paris
they could do little to control prices driven by speculators
betting on " worst case scenarios" and said the market has all
the Crude Oil it needs.
Wednesday, the US Energy Information Administration reported
that Crude Oil inventories increased 2M bbls in the week ended
April 1. It was the 9th rise in the last 10 weeks, showing that
the US Crude Oil supply was not affected by the MENA region
unrest. This pressured the market in the earlier trading
Light, Sweet Crude for May delivery added 53c to settle at
108.47 bbl on the New York Merc. In London, Brent Light Crude for
May delivery also rose and last traded above 122 bbl.