Gold flat as stimulus buying fades, euro zone eyed

 NEW YORK: Gold traded flat on Wednesday, as renewed fears about a worsening euro zone debt crisis along with wider concern about the global economy dampened the metal's allure as a traditional inflation hedge.

Analysts said that some investors could take profits after gold had climbed for four consecutive months prior to October. The failure of recent rallies to break above $1,800 an ounce also triggered technical pressure.

The metal reached an 11-month high on Friday on hopes that the Federal Reserve, European Central Bank and other major central banks would continue pumping money into the global economy to stimulate growth, which has boosted gold's inflation-hedge appeal.

"Additional monetary policy easing in the United States and other countries is no longer fresh news, and so we do not anticipate further significant buying of gold based on monetary policy accommodation alone," said James Steel, HSBC's metal analyst.

Spot gold was down 0.1 percent at $1,762.70 an ounce by 11:10 a.m. EDT (1510 GMT). Bullion was still within reach to a 11-month high of $1,795.69, which marked the loftiest price since November.

US COMEX gold futures for December delivery were 40 cents lower at $1,764.60, with trading volume on track to finish sharply below average, preliminary Reuters data showed.

Silver, however, climbed 0.6 percent to $34.05 an ounce, boosted by better industrial-demand outlook as crude oil and base metals recovered after their recent losses.

Bullion tracked US equities lower, after the International Monetary Fund on Wednesday urged European policymakers to deepen the financial and fiscal ties within the euro area to restore sagging confidence in the global financial system.

Purchases of exchange-traded products (ETPs) reflected investors' positive outlook for bullion in the long term. Bullion backed ETPs rose to a record high on Oct 9.

A Reuters poll of 27 analysts released Wednesday showed they remained bullish on bullion in the long term. Analysts unanimously forecast a record high average price of $1,690.00 an ounce in 2012, up a touch from an estimate of $1,685.00 at the end of the second quarter and $1,765 suggested in January.

Analysts expect the metal to book a thirteenth successive year of gains in 2013, reaching an average price of $1,853.75.

Among platinum group metals that are mostly used as auto catalytic converters, platinum fell on signs that industrial unrest in South Africa, home to the largest platinum reserves, was abating.

Spot platinum was down 0.3 percent on the day at $1,674.75 per ounce, while palladium was down 0.2 percent at $651.47 an ounce.

Palladium also fell after data from China showed a decline in vehicle sales in September versus the year earlier period, the China Association of Automobile Manufacturers (CAAM) said on Wednesday.

OIL FUTURES: Crude Pushes Above $93/bbl

--U.S. crude oil adds gains as Middle East keeps traders on edge
--Nymex oil recently up 99 cents to $93.38/bbl
--Iran, Syria worries trump OPEC warning on demand slowdown

 
   By Jerry A. DiColo 
 

NEW YORK--U.S. crude-oil futures pushed higher Wednesday, adding to a $3 rally Tuesday as investors stay focused on renewed tensions in the Middle East.
Light, sweet crude oil for November delivery recently traded 99 cents, or 1.1%, higher at $93.38 a barrel on the New York Mercantile Exchange. Brent crude oil on the ICE futures exchange traded up 77 cents to $115.27 a barrel.
Oil prices rose Wednesday as concerns about Turkey and Syria continued to mount, after Turkey's top military commander warned that the country would take tougher action if Syrian shells continued to land on Turkish territory.
While Turkey and Syria aren't major oil producers, the possibility of expanded military activity highlights the threat that Syria's civil war could devolve into a regional conflict. Turkey is also an important oil-transportation route, and fears have grown that the 400,000 barrels a day of Iraqi oil piped to the Turkish port of Ceyhan could become a target.
"Elevated tensions and military activity along the Syria-Turkey border are reminders that isolated incidents could quickly spread," analysts at JP Morgan said in a note to clients.
On Tuesday, prices rose more than $3 a barrel as Israeli Prime Minister Benjamin Netanyahu called parliamentary elections for early 2013, a move seen by some as a way to shore up his political base ahead of possible military action against Iran.
The latest worries about oil supplies from the Middle East has trumped several reports this week suggesting global oil demand growth will stall.
The Organization of Petroleum Exporting Countries said Wednesday oil supplies will remain comfortable in the coming year, lowered its forecast for global demand growth this year and predicted a continued slowdown in 2013.
"Right now the market is undecided on the next move," said Phil Flynn, an energy analyst at Price Futures Group. "Weaker demand should mean lower prices but, in a world hellbent on keeping the economy afloat with stimulus, and the rising geopolitical risk, supply and demand won't matter."
Oil prices have seen big swings in recent days, but have still remained close to the level of $90 a barrel since falling from near $100 a barrel in mid-September.
In its monthly oil-market report, OPEC said oil-demand growth will fall to 800,000 barrels a day this year, down 100,000 barrels a day from its previous estimate. But the group warned that next year's demand faces "considerable uncertainties" that could lower its 2013 estimate by as much as 20%.
The OPEC report followed a report from the International Monetary Fund earlier this week suggesting that the risk of a global recession has risen, raising worries about oil demand even as Middle East tensions keep traders on edge.
Front-month November reformulated gasoline blendstock, or RBOB, recently traded 2.07 cents higher at $2.9794 a gallon. November heating oil recently traded 2.64 cent higher at $3.2296 a gallon.
--Ben Winkley contributed to this report.
Write to Jerry A. DiColo at jerry.dicolo@dowjones.com.

Gold extends losses to a third day

SAN FRANCISCO (MarketWatch) — Gold prices traded lower Tuesday as global-growth concerns and nervousness ahead of the corporate-earnings season preoccupied traders, and as the dollar gathered steam.

Gold for December delivery GCZ2 -0.41%  declined $8.10, or 0.5%, to $1,767.50 an ounce on the Comex division of the New York Mercantile Exchange. It earlier traded as low as $1,762 an ounce, and prices had spent most of the session in and out of the red.

Gold was getting mixed messages on Tuesday, said Adam Klopfenstein, a senior marketing strategist with Archer Financial. Some inflationary forces were at play, but amid equity weakness and dollar strength it could not get much traction, he said.

Gold dropped $5.10, or 0.3%, on Monday to settle at $1,775.70 an ounce, after the World Bank downgraded its growth forecast for Chinese growth.

The International Monetary Fund on Tuesday cut its forecast for global growth yet again, to 3.3% this year from a forecast of 3.5% made in July. The bank predicted growth of 3.6% in 2013, from a prediction of 3.9% in July.

The bank also said France, Spain and other euro-zone governments won’t meet fiscal targets agreed upon. IMF: key euro-zone nations to miss deficit targets.

The downgrade and the worries made the dollar the safe-haven of choice, crimping gold and other dollar-denominated commodities.

The ICE dollar index DXY +0.54% , which measures the dollar against a basket of six currencies, rose to 79.981, compared with 79.595 in late North American trading on Monday. See: Dollar rises as IMF sounds warning.

Also on Tuesday, the People’s Bank of China injected a big dose of liquidity to help ease tight money conditions.

That move strengthened hopes for more policy easing from the central bank, providing some underlying support for commodities. See: PBOC’s Zhou pledges flexible, pre-emptive policy

Analysts at Commerzbank said in a research note that markets seem to be recognizing that chances of cheap central bank liquidity will improve if global growth continues to slow. Gold has gained this year largely due to central-bank efforts to keep monetary policy loose.

“The chance of unlimited, cheap central bank liquidity and strong exchange-traded-fund inflows suggest that the price might soon rise towards $1,800,” the analysts wrote. Continuing strikes in the South African gold sector are another supportive factor, they noted.

There are strikes at mines owned by AngloGold Ashanti Ltd. AU +0.07%   ZA:ANG +4.62% , Gold Fields Ltd. ZA:GFI +1.95% , and Harmony Gold Mining Co. ZA:HAR +1.91%   HMY -0.05% . Workers from other sectors have also joined the walkouts in recent days.

While South African gold production has been on the wane, the nation was still the fifth-largest gold producer last year, the Commerzbank analysts said.

“Every ounce which is lost to strikes exacerbates the supply bottlenecks, and since the beginning of September, (exchange-traded funds) have been absorbing virtually half of the global mine production during this period,” they said.

South Africa’s strikes are a strain but one that does not impact gold as much as it impacts platinum, Klopfenstein said.

Platinum, 80% of which is mined in South Africa, remains well supported by strikes that continue to spread, lately to Xstrata PLC’s UK:XTA +0.86%  Eland mine.

January platinum futures PLF3 -0.11%  turned lower, however, off $2.10, or 0.1%, to $1,696.70 an ounce, while palladium for December delivery PAZ2 +0.21%  rose $2.35, or 0.4%, to $659.30 an ounce.

Silver went back to the red, with the December contract SIZ2 -0.05%  down 8 cents, or 0.3%, to $33.93 an ounce.

December copper futures HGZ2 +0.01%  rose less than 1 cent, or 0.1%, to $3.72 a pound

Oil prices rebound; Brent jumps above $113

WORLD oil futures have recovered on Middle East tensions according to analysts, helping to offset Saudi Arabia's pledge to satisfy global energy markets and "moderate" prices. 
 
Brent North Sea crude for delivery in November jumped $1.65 to $US113.46 ($A111.84) a barrel in late London deals.
New York's main contract, light sweet crude for November, gained $1.99 to $91.32 a barrel.
"Crude oil prices rebounded on Tuesday, as renewed concerns about Middle East tensions provided some upside momentum to the oil market," said Sucden Financial Research analyst Myrto Sokou.
NATO head Anders Fogh Rasmussen on Tuesday warned against the dangers of the conflict in Syria escalating, saying alliance member Turkey had shown commendable restraint in response to shelling of its border area.
Syrian shells last week killed five people in a Turkish border village, sparking a series of retaliatory strikes.

Oil prices meanwhile held onto their gains on Tuesday despite bearish comments by Saudi Oil Minister Ali al-Naimi.
"We will provide the markets with what they need," Naimi told reporters on the sidelines of a ministerial meeting in Riyadh. "We will work to moderate prices."
Addressing fellow ministers, Naimi warned that rising oil prices would affect economic growth across the globe, mainly in developing economies.
"Oil prices rose in March to levels not seen since 2008, which may adversely affect the global economy, particularly the economies of developing nations and emerging countries, as well as negatively impact global oil demand," he said.
Crude futures had fallen on Monday as the International Monetary Fund and World Bank slashed their 2012 growth forecasts.
The IMF cut its forecast for Chinese economic growth this year to 7.8 per cent, while the World Bank said it expected the world's second-largest economy to grow at a slower-than-expected 7.7 per cent.
The brokerage Phillip Futures said in a note to clients that "China's economic growth and demand for petroleum have been key supports for oil prices since global energy demand was hit by recession after the financial crisis."

Oil prices rebound; Brent jumps above $113

WORLD oil futures have recovered on Middle East tensions according to analysts, helping to offset Saudi Arabia's pledge to satisfy global energy markets and "moderate" prices. 
 
Brent North Sea crude for delivery in November jumped $1.65 to $US113.46 ($A111.84) a barrel in late London deals.
New York's main contract, light sweet crude for November, gained $1.99 to $91.32 a barrel.
"Crude oil prices rebounded on Tuesday, as renewed concerns about Middle East tensions provided some upside momentum to the oil market," said Sucden Financial Research analyst Myrto Sokou.
NATO head Anders Fogh Rasmussen on Tuesday warned against the dangers of the conflict in Syria escalating, saying alliance member Turkey had shown commendable restraint in response to shelling of its border area.
Syrian shells last week killed five people in a Turkish border village, sparking a series of retaliatory strikes.

Oil prices meanwhile held onto their gains on Tuesday despite bearish comments by Saudi Oil Minister Ali al-Naimi.
"We will provide the markets with what they need," Naimi told reporters on the sidelines of a ministerial meeting in Riyadh. "We will work to moderate prices."
Addressing fellow ministers, Naimi warned that rising oil prices would affect economic growth across the globe, mainly in developing economies.
"Oil prices rose in March to levels not seen since 2008, which may adversely affect the global economy, particularly the economies of developing nations and emerging countries, as well as negatively impact global oil demand," he said.
Crude futures had fallen on Monday as the International Monetary Fund and World Bank slashed their 2012 growth forecasts.
The IMF cut its forecast for Chinese economic growth this year to 7.8 per cent, while the World Bank said it expected the world's second-largest economy to grow at a slower-than-expected 7.7 per cent.
The brokerage Phillip Futures said in a note to clients that "China's economic growth and demand for petroleum have been key supports for oil prices since global energy demand was hit by recession after the financial crisis."

Gold futures swing between gains and losses on USD strength

Gold futures swung between modest gains and losses in rangebound trade during U.S. morning hours on Tuesday, as ongoing concerns over Spain and Greece boosted demand for the U.S. dollar.

Lingering worries over the health of the global economy also weighed on sentiment.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,775.55 a troy ounce during U.S. morning trade, easing down 0.02%.    

Prices were stuck in a narrow trading range of USD1,771.95 a troy ounce, the daily low and a session high of USD1,781.55 a troy ounce.

Gold prices were likely to find support at USD1,765.75 a troy ounce, the low from October 1 and near-term resistance at USD1,793.85, October 1’s high.

Market sentiment remained under pressure after the International Monetary Fund cut its global growth forecasts and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.

The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.

Investors also remained cautious amid uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.

Meanwhile, German Chancellor Angel Merkel said earlier that Greece was on a “tough path” following talks with Prime Minister Antonis Samaras in Athens, but one which she believed would pay off.

The talks came amid ongoing uncertainty over whether international creditors will extend loans to Greece, as the country struggles to meet deficit reduction targets.

The risk-off trade environment prompted investors to shun riskier assets, such as stocks and commodities and flock to traditional safe haven assets like the U.S. dollar and Treasuries.

The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.3% to trade at 79.92.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere on the Comex, silver for December delivery was dipped 0.02% to trade at USD34.01 a troy ounce, while copper for December delivery added 0.25% to trade at USD3.728 a pound.

Copper prices found support after the People’s Bank of China injected CNY265 billion into the money market, in a bid to ease tight liquidity conditions.

The move raised optimism for further supportive policy measures out of China, the world’s largest consumer of the industrial metal.

Natural gas futures drop with warm weather in focus

Natural gas futures came under pressure during U.S. morning trade on Tuesday, as forecasts calling for warmer-than-normal autumn temperatures weighed on future demand expectations for the heating fuel.

Traders also looked ahead to Thursday’s closely watched U.S. government report on natural gas supplies.

On the New York Mercantile Exchange, natural gas futures for delivery in November traded at USD3.349 per million British thermal units during U.S. morning trade, dropping 1.6%.     

It earlier fell by as much as 1.65% to trade at a session low of USD3.348 per million British thermal units.

Updated weather forecasts released Monday showed warmer-than-normal temperatures were expected across much of the U.S. Midwest and East Coast over the next two weeks, dampening early-Autumn heating demand for natural gas.

According to the Commodity Weather Group, spikes of "much-above-normal temperatures" in the Midwest are expected in the next six-to-10 days, while the East Coast will see similar weather patterns in the next 11-to-15 days.

Natural gas futures often reach a seasonal low in October, when mild weather reduces demand, before recovering in the winter, when heating-fuel use peaks.

Ongoing concerns over bloated U.S. inventory levels also added to the selling pressure. Total U.S. gas supplies stood at 3.653 trillion cubic feet, 8.3% above the five-year average level for the week.

Early injection estimates for this week’s storage data range from 76 billion cubic feet to 98 billion cubic feet, compared to last year's build of 108 billion cubic feet. The five-year average change for the week is an increase of 84 billion cubic feet.

Inventory did not top the 3.4-trillion cubic feet level in 2011 until October 5, with stocks peaking at a record 3.852 trillion cubic feet in November of last year.

Market analysts have warned that without strong demand through the early-Autumn shoulder season, gas inventories will reach the limits of available capacity later this year.

The shoulder season is the period in autumn when gas demand typically slackens and prices fall.

Elsewhere on the NYMEX, light sweet crude oil futures for delivery in November rallied 2.2% to trade at USD91.29 a barrel, while heating oil for November delivery rose 1.05% to trade at USD3.177 per gallon.

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The Bullion shine: How global Gold fared in the past week

LONDON   The bulk of the complex posted gains over the week, with gold prices closing at an 11-month high as the macro environment has become increasingly supportive.
Gold has consolidated its gains but has yet to breach $1800/oz as equity markets have edged higher and the dollar has weakened. Gold has been looking to macro events for reinforcement, and the ECB leaving rates unchanged in line with expectations has not derailed gold’s trajectory, but non-farm payrolls being broadly in line with expectations has triggered some profit-taking.
“Our FX strategists look for the EUR/USD to strengthen to 1.35 in three months, removing a sticky hurdle for gold prices.” Barclays said.
In terms of non-macro headwinds, the physical market has started to show signs of support, although it remains weaker than the seasonal norm. While markets remain closed with the week-long National Day holiday in China, local dealers in India have reported a pickup in gold buying as local prices have eased from record highs as the INR has strengthened against the USD to levels last seen in mid-April.
Meanwhile, scrap selling has started to slow in Indonesia and Singapore. Earlier in the week, reports highlighted the surge in scrap supply, with local dealers and the trade body estimating supply from India at 200-300 tons this year, compared with 58.5 tons last year.

The Crude Oil week: Of barrels and bullets

Crude oil markets have mirrored the price movement over the previous week, in that it has eased over the early half only to rebound by the end of the week. Front-month Brent continues to oscillate around the $111/bbl mark, while the equivalent WTI contract has once again bounced back after inching below the $90/bbl mark.
Geopolitical risks continue to escalate, with protests reported in Iran following the sharp depreciation of its currency, while tensions have escalated on the Turkish-Syrian border.
Fundamentally, the supply system has a cocktail of positives and shortfalls, both among OPEC and non-OPEC producers. Starting with the positives, Iraqi oil exports are showing strong growth due to recent capacity expansion at its southern fields and export system.
Further, with the central government and the Kurdistan region reaching an agreement on oil revenue sharing, exports have resumed from the former region as well, which has helped buoy output. This week saw a further firming of this agreement, as Baghdad made the first set of payments.
Although output is increasing, Barclays continues to highlight the geopolitical situation in the region that continues to pose a risk to output levels from the country. Further in the non-OPEC, Russian production continues to grow as well, although exports have been limited by strong demand within the FSU.
While the positives on the supply side are welcomed by a market with limited supply buffers, the tally of shortfalls continue to build up as well.
This week saw further cargo delays in the North Sea. Three more Forties crude cargoes for export in October were delayed, bringing the total deferrals for the month to ten. The delays are a result of longer-than-expected maintenance at UK’s biggest oil field Buzzard (200 thousand b/d), as well as reduced output from other North Sea fields.
Among the OPEC producers, shortfalls in Nigeria have come to the spotlight again as on Sunday, a fire on the Bomu-Bonny trunk line has affected about 150 thousand b/d of Nigerian Bonny light exports. So far, although Shell has not declared force majeure for Bonny light exports so far, two October loadings of cargoes have been delayed.
Finally, in terms of data releases, the weakness in Brazilian output continues to persist. Output from the country touched a 22-month low in August. The latest data peg total output at 2.096 mb/d, lower y/y by 43 thousand b/d (- 2%). NGL output growth was flat, and the weakness was due entirely to the falling crude profile, pegged at 2.006 mb/d (46 thousand b/d lower y/y).
Along with the delays in bringing new fields online, the weakness was pronounced in August because of scheduled maintenance at the giant Rancador and Marlim Leste fields in the Campos Basin. Further risks to production were expected in September as offshore drilling contractors Transocean and Chevron were served with injunctions to shut in their oil production. The injunctions were issued as part of a civil case involving last November’s oil spill at the Frade field. If the injunction had gone through, this would have dented Brazilian output significantly. However, Brazil’s court lifted the injunction on Transocean on 1 October.
With regards to Chevron, the court has not lifted the full ban, asking the company to continue only those activities related to the mitigation and monitoring of the November oil spill in the Frade offshore field. In the year-to-date, Brazilian production growth is now flat. Overall, Barclays expects Brazilian output to decline y/y by 60 thousand b/d in 2012.

Epic Debate: It is Jim Rogers Vs. Marc Faber on China

Jim Rogers reply that he is bullish on China and he believes that China is about to become the greatest country in 21st century. “I only buy China when it collapses” he said, and added that he bought into Chinese assets thrice: 1999, 2005 and 2008 November when there were collapses.

While the investment gurus Jim Rogers and Marc Faber agree on certain points in a CNBC TV debate, there are instances where they disagree.
For example China: Marc points out that China’s bench mark stock index the Shanghai Stock Exchange Composite Index was at 6100 in 2007 even as it is currently at 2086 levels these days; how would Jim Rogers be able to maintain that he is bullish on China?
Jim Rogers reply that he is bullish on China and he believes that China is about to become the greatest country in 21st century. “I only buy China when it collapses” he said, and added that he bought into Chinese assets thrice: 1999, 2005 and 2008 November when there were collapses.
“But there is a huge difference when one says that China is going to be the greatest country in 21st century and one should buy Chinese stocks” Jim Rogers stressed. “But I do buy Chinese stocks and would buy more if China collapses.” he said. And I buy them for my daughters; one day they may say that, “old man was a smart guy.”
Marc Faber meanwhile is bullish on Russia, as per Jim Rogers.
On US’ QE initiatives, Jim Rogers said that the biggest problem with authorities is that, “they think they know what they are doing” which actually may not be the case.
On Romney and Obama, Jim said, “they are both the same” to which Marc Faber agreed.
Jim Rogers mentioned that he is long on commodities and currencies and short on stocks. “If money printing continues by central bankers, bond markets would collapse and interest rates would shoot up.” he added.

Merkel to visit Greece next week; Rumors of imminent Spanish bailout denied

The trading week, dominated by contradictory reports concerning the Spanish bailout, ends with European markets in the green, after the sentiment was boosted on Thursday by ECB's announcement that its bond-buying program could be activated whenever needed. Following the release of the solid US NFP data for September EUR/USD broke above the 1.3030 level.

Samaras and Merkel to meet in Athens next Tuesday

German Chancellor Angela Merkel will travel to Greece on October 9 to hold talks with PM Anotnis Samaras. This is the first time since the onset of the crisis that the German leader will visit Athens. Greek labor unions are planning a rally outside the parliament on Tuesday to demonstrate their opposition towards the visit

Earlier on Friday Samaras warned that Greece was running out of funds and that it was crucial for the country to receive the next tranche of the bailout money before the end of November, in order to prevent it from defaulting on its debts. On Saturday the Greek government will meet with Troika inspectors for the last time before the October 8 EcoFin meeting, in an attempt to reach an agreement on the remaining 2 billion euros of austerity measures.

"The troika is demanding above all further cuts to pensions and wages. That is very difficult, because we are already bleeding," Samaras said in an interview for the German daily Handelsblatt. "The existing cuts already go to the bone. We are at the limit of what we can expect of our population."

Eurogroup considers Spanish bailout unnecessary

A EU official told reporters on Friday that Spanish banks would not be recapitalized through the ESM this year and that the exact timing of the procedure was not known yet. He added that the Eurogroup also did not see the need for a complete Spanish bailout such as those granted to Greece, Ireland or Portugal.

The official said that the results of the latest Spanish debt auctions were satisfactory and that the situation on the financial markets improved considerably over the last six months. Eurozone finance ministers, who will hold a meeting on October 8, will discuss the situation in Spain, but they do not expect that Mariano Rajoy's government will ask for the activation of the ESM.

These declarations further contradict rumors of an imminent request for a Spanish bailout, which have been circulating in recent days. On Tuesday Mariano Rajoy said that such a request would not be made in the nearest future while on Thursday night Finance Minister Luis de Guindos denied that Spain needs a bailout at all.

Spanish FinMin denies that Spain needs a bailout

During a lecture at the London School of Economics Spanish Finance Minister Luis de Guindos told the audience that Spain does not need a bailout, despite the increasing rumors that the country might officially ask for aid as soon as this weekend. He said that what the country really needs is ECB's intervention on the secondary market of government bonds under certain conditions.

Referring to the harsh austerity measures, introduced recently by the Spanish government and triggering violent protests in Madrid Luis de Guindos assured that “what we are doing is what we think is the correct thing not only for Spain but for the future of the Eurozone."

During Luis de Guindos's speech a group of young Spaniards protested by displaying placards with the inscription “Spain for Sale.”

Metals sell off in U.S. economic number anticipation

Gold futures moved lower in European trade Friday as profit takers hit the yellow metal while investors anticipate crucial numbers from the U.S. economy later in the session.

On the Comex division of the New York Mercantile Exchange, Gold futures for December delivery traded at USD1793.75 a troy ounce slipping 0.15%.

It earlier traded at a session high USD1798.05 a troy ounce. Gold was likely to find support at USD1765.75 and resistance at USD1798.05.
Gold prices advanced Thursday, after ECB President Mario Draghi reiterated that the central bank was ready to start purchasing the debt of troubled euro zone states.

Speaking at the ECB’s post-policy meeting press conference earlier in the day, Draghi said the central bank was ready to undertake Outright Monetary Transactions when the prerequisites are in place.

Draghi reiterated that the central bank was acting strictly within its mandate in undertaking a bond buying program via OMT’s.

The ECB left rates on hold at a record low 0.75% earlier, in a widely anticipated decision.

Meanwhile, the minutes of the Federal Reserve's September policy meeting showed that the central bank is moving toward linking its outlook for near-zero interest rates to specific economic conditions such as a decline in the unemployment rate.

On Thursday, the Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week rose to 367,000, compared to expectations for an increase of 7,000 to 370,000.

Investors were eyeing the release of key U.S. jobs data, including the nonfarm payrolls for September, later in the session.

US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.04% to trade at USD79.46.

Elsewhere on the Comex, Silver for December delivery dropped 0.16% to trade at USD35.995 a troy ounce while Copper for December delivery gave back 0.08% to trade at USD3.783 a pound.

Crude drops on profit-taking, shrugs off strong U.S. jobs data

Crude oil futures fell on Friday amid profit-taking, as investors shrugged off surprisingly strong U.S. employment data.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in November traded at USD89.46 a barrel on Friday, down 2.45%, off from a session high of USD91.65 and up from an earlier session low of USD89.03.

Oil ignored otherwise bullish data.

The U.S. unemployment rate fell to 7.8% percent in September from 8.1% in August, the Bureau of Labor Statistics reported earlier Friday.

Employers added a net 114,000 jobs in September, while households reported that total employment rose by 873,000 in September following three months of little change.

The number of unemployed Americans stands at 12.1 million, the fewest since January 2009.

Oil gained when the news broke but later fell amid profit-taking on sentiment that despite the improvement, not enough new jobs were created last month.

More workers took on part-time jobs last month, which accounted for the drop in the headline unemployment rate.

On the ICE Futures Exchange, Brent oil futures for November delivery were up 2.94% and trading at USD111.34  a barrel, up USD21.88 from its U.S. counterpart.

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Gold drops despite solid U.S. employment figures

 Gold prices fell in U.S. trading on Friday as investors sold the precious metal for profits, shrugging off solid unemployment data that sent gold's traditional hedge, the dollar, dipping.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.94% at USD1,779.85 a troy ounce, up from a session low of USD1,774.95 and down from a high of USD1,798.05 a troy ounce.

Gold futures were likely to test support at USD1,774.95 a troy ounce, the earlier low, and resistance at USD1,798.05, the earlier high.

The U.S. unemployment rate fell to 7.8% percent in September from 8.1% in August, the Bureau of Labor Statistics reported earlier Friday.

Employers added a net 114,000 jobs in September, while households reported that total employment rose by 873,000 in September following three months of little change.

The number of unemployed Americans stands at 12.1 million, the fewest since January 2009.

Gold fell shortly after the news broke on sentiment that not enough new jobs were created last month and would likely not alter U.S. monetary policy.

More workers took on part-time jobs last month, which accounted for the drop in the headline unemployment rate.

Gold has risen in recent sessions due to loose monetary policies around the world, in the U.S. especially.

The U.S. Federal Reserve is currently running a third round of quantitative easing, a monetary stimulus tool that sees the U.S. central bank buy USD40 billion in mortgage-backed securities a month on an open-ended basis to spur recovery.

Such policy tools weaken the greenback and make gold an attractive hedge.

Elsewhere on the Comex, silver for December delivery was down 1.78% and trading at USD34.475 a troy ounce, while copper for December delivery was down 0.56% and trading at USD3.765 a pound.

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