Commodites: Gold, Silver, Nat Gas Rally, Crude Oil Falls
The energy sector (-1.5%) sold at the open and it remains at the bottom of the board.
WTI Crude Oil fell 3.0% to 95.49 bbl.
Feb crude oil extended losses for a 3rd session running, as a stronger DXY, and reports that Libyan protesters have agreed to reopen a Key Oil field weighed on prices Thursday.
Feb Nat Gas traded around in the Green Thursday. It dipped to a session low at 4.27 per MMBtu in early afternoon pit trade, but regained momentum. It settled with a 2.1% gainer at 4.32 per MMBtu, just below its session high at 4.33 per MMBtu.
The materials sector (-0.7%) outperformed. Miners showed some strength as the Market Vectors Gold Miners ETF (NYSEArca:GDX) 21.98, +0.85 traded up 4.0%.
Feb Comex Gold futures finished its pit session with a 1.9% gainer at 1225.40 oz.
Precious metals traded higher Thursday despite the stronger US Dollat Index (DXY).
Gold settled at 1225.40, posting a gainer of 1.9%.
The rally in precious metals began overseas on physical buying in Asia, with the move helped along when buy stops were triggered.
Feb Gold peaked overnight at 1,228 its strongest level in 2 wks. It backed off as far as 1,211 shortly before the New York trading day started, then moved above 1,230 towards the Comex pit close.
The Key factor is the index rebalancing.
The Standard & Poor’s Goldman Sachs Commodities Index and the Dow Jones UBS Commodities Index both increased their allocations to Gold and sSlver for Y 2014. Funds that track these must recalibrate accordingly.
Also, the year is starting with some equity-market weakness, as funds are being removed and/or reallocated from equities, given their record highs, to some relatively low ‘value’ levels in Gold.”
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