Solid gold prices on Tuesday as stock markets rallied and the dollar weakened, but gains limited as New York Stock Exchange was still closed due to Hurricane Sandy and ahead of key U.S. employment data this week. Gold has the support of strengthening European stock markets, which are driven by good earnings reports from BP and UBS, and the euro after data showed the Spanish economy contracted at a slightly slower behavior than forecast in September.
However gold is still leading the biggest monthly drop since May as a boost up from the current stimulus program from the Federal Reserve began to fade. As an extension of stimulus-related programs by the health of the labor market, data non-farm payrolls will probably have a major impact. Peter Fertig, consultant at Quantitative Commodity Research, said the unemployment rate inherent in high levels in the U.S. indicates that monetary easing will not end any time soon, indicating that the gold price is quite supported. "The unemployment rate is not at the level of the Fed comfortable."
Oil falls towards $ 85 Per Barrel
Crude oil prices fell toward $ 85 a barrel level on Tuesday in concerns over weak demand from the U.S. East Coast after the storm passes at Sandy area refineries shut, roads, and airports. Like this which is one of the biggest storms that hit the U.S. shut down two-thirds of the state refineries, pipelines largest, and most ports.
Sandy crippled most parts of the East Coast, closing the air, shipping, railways and even toll roads and cutting off power to more than 2.8 million homes and businesses. Initial reports indicate the refinery in Philadelphia seems not damaged by the storm and the nearby small factories operate without problems. But investors are waiting for a report on the damage to the oil terminal network, pipelines and transport facilities in the region to suppress supply.
Earnings, Italian Bond Auctions Lift European stocks
European stocks closed higher on Tuesday after positive earnings reports and a successful bond auction in Italy. Oil giant BP shares closed up more than 4% after the release of third-quarter earnings above estimates. Swiss Bank UBS released second-quarter earnings results and confirmed it will lay off about 10,000 workers; shares also closed up.
At the auction on Tuesday, the Italian government sold bonds worth 7 billion euros in the tenor of 5 years and 10 years. The yield fell to its lowest level since May 2011, with the yield on 10-year bonds at 4.92%. This happened in spite of the former threat of former Prime Minister Silvio Berlusconi to overthrow the government on Saturday.
However gold is still leading the biggest monthly drop since May as a boost up from the current stimulus program from the Federal Reserve began to fade. As an extension of stimulus-related programs by the health of the labor market, data non-farm payrolls will probably have a major impact. Peter Fertig, consultant at Quantitative Commodity Research, said the unemployment rate inherent in high levels in the U.S. indicates that monetary easing will not end any time soon, indicating that the gold price is quite supported. "The unemployment rate is not at the level of the Fed comfortable."
Oil falls towards $ 85 Per Barrel
Crude oil prices fell toward $ 85 a barrel level on Tuesday in concerns over weak demand from the U.S. East Coast after the storm passes at Sandy area refineries shut, roads, and airports. Like this which is one of the biggest storms that hit the U.S. shut down two-thirds of the state refineries, pipelines largest, and most ports.
Sandy crippled most parts of the East Coast, closing the air, shipping, railways and even toll roads and cutting off power to more than 2.8 million homes and businesses. Initial reports indicate the refinery in Philadelphia seems not damaged by the storm and the nearby small factories operate without problems. But investors are waiting for a report on the damage to the oil terminal network, pipelines and transport facilities in the region to suppress supply.
Earnings, Italian Bond Auctions Lift European stocks
European stocks closed higher on Tuesday after positive earnings reports and a successful bond auction in Italy. Oil giant BP shares closed up more than 4% after the release of third-quarter earnings above estimates. Swiss Bank UBS released second-quarter earnings results and confirmed it will lay off about 10,000 workers; shares also closed up.
At the auction on Tuesday, the Italian government sold bonds worth 7 billion euros in the tenor of 5 years and 10 years. The yield fell to its lowest level since May 2011, with the yield on 10-year bonds at 4.92%. This happened in spite of the former threat of former Prime Minister Silvio Berlusconi to overthrow the government on Saturday.
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