“Saxo Bank”: commodity markets awaiting the outcome of the election Greek

Gold price technical analysis 30 - May, 2013


Said weekly report issued by Saxo Bank that markets for goods and financial markets has seen the start of the election before the end of this week’s Greek limited trading activity, where many of them focused on the amendment, or perhaps reduce their exposure before the crucial vote broadly Greece to decide the future of Europe and the common currency.

The report prepared by the first S Hansen, President of the strategies of goods in Saxo Bank, the euro rather than for the second week in a row some of the losses he had suffered recently due to poor coverage and anticipation put forward new policy initiatives has been able compensate some of the support he received from sources reported that the world’s central banks ready to provide liquidity in the conduct of orderly elections in the event caused in risk aversion to a large extent, the following are more details:

Keep the Dow Jones UBS Commodities its status unchanged during the week supported by the gains that have made natural gas and minerals while pulled some agricultural products, such as coffee, soybeans and wheat, the cursor in the other direction.

OPEC would prefer to maintain the status quo

Contract and the oil ministers of the Organization of Petroleum Exporting Countries (OPEC) meeting in Vienna the center of the focus’s great view of the market selling at discounted prices too witnessed by the recent market. Could have been the invitation of Saudi Arabia to cut production amid fears of the collapse of oil prices to be dismissed as indicated Orbak in a statement to the risk of negative impact of facing the global economy as a reason to maintain the quantity of production target of 30 million barrels a day, so accept the fact that the outcome Now almost daily 32 million barrels a day.

Despite the united front shown by OPEC at the end of the day but there is no doubt that the levels of production in the coming months will be decided by Saudi Arabia unilaterally where they are still concerned about the impact on the stocks because of the ban on Iranian exports, which began in July 1 and expectations for quarterly revenue achieved with the entry of the third quarter. Iran is one of the countries suffering most from the sale of oil at low prices with the start of the impact of sanctions on the levels of production as described below, and in spite of its claim that its exports have maintained their previous levels.
Spent remained Brent most of the time during the week is trading marginally closer to the lowest level, where he arrived recently after failing in an attempt to restore its activity during the past week which has left decades urgent with prices ranging from 96 and 102.50 with uncertainty about the future of Europe and economies experiencing a slowdown in China and the United States while now seem any attempts at recovery futile and useless. Must indicate the positive that has emerged from the pressure relief witnessed by selling speculation and caused by the liquidation process in the long run, which formed a major force during the sale at discounted prices, with the return of the centers strong occupied by the traders to levels manageable by even more.

As is the case for fear that prevailed over the penetration rate of $ 150 a barrel from the province to support the market in March, the current talk about $ 50 a barrel will cause anxiety and stress on the trading during the summer, if the amount of the outlook of the global economic to see a further decline.

High natural gas prices, given the decline of stocks

Surprised the weekly report of inventory data on the U.S. markets when the government reported that inventories rose only 67 billion square feet, compared with gains of unexpected and reached to 75 billion. Natural gas prices jumped a surprising jump by 14 percent, the highest daily increase since September 10, 2009 to close to less than U.S. $ 2.5 per hundred thousand British thermal units.

Seems that the market is witnessing a new arena, but it is still too early to say whether this long-awaited beginning of the recovery of many of its investors. Generally believed that there must be prices to remain below 2.5 and not higher than 2.75 until the end of the pumping season to be able to see the shift from coal to gas, and this is an important factor in reducing the surplus. With the approach of summer in the United States because of increased consumption of gas generators in the face of rising demand and the need for cooling. Play temperatures and change in the coming months, compared with previous years a large role in moving natural gas prices.
Gold is witnessing signs of strength
Showed the price of gold, as is the case for copper and platinum, signs of strength in the past week, with average confidence in gold with the last two obstacles confronted and traders who wish to support those who believed that central banks will provide an additional incentive in light of the slowdown witnessed by the global economic growth. In India, which is the largest consumer of the price to its highest level ever against the weak currency exchange and purchase of gold by traders before the start of the next season of marriage. Overall, the actual demand remains weak in Asia amid weak economic outlook for India and the high prices. Any signs of a physical activity, even if little in the larger scheme that will positively affect the psychological point of gold on the traffickers.

However, we need to see some fracture sustained rise above the level reached at the recent 1640 to alleviate concerns about a deeper correction. So far, we were able to see at least a major package of support between 1540 and 1560 was submitted before settling down the main line for 1520.

Recovery of platinum and copper

Platinum recovered by more than four percent at the beginning of this month and marked his performance with the performance of gold during the trading in the light of the interaction of producers with the outlook for demand slowdown witnessed in the auto industry, which led to reduced production. The rate of price between gold and platinum platinum fell in front of gold, which is an alternative method of choice for trading these metals rather than looking at each separately, which in turn led to a decrease of 9 percent compared with an average of 23 percent over the last five years.