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16 Sep 2013
Gold on largest weekly loss since late June on Friday
FXstreet.com (Athens)- Brent crude oil edged higher on Friday, while gold hit its lowest point since the 8th of August, as of $1,304.56.
The dollar weakened against the euro and yen as investors adjusted positions ahead of the weekend and due to this week U.S. Federal Reserve policy setting meeting. After last Friday's weaker-than-expected U.S. non-farm payrolls data, many traders and analysts expect the central bank to announce a modest $10 billion reduction to its $85 billion monthly bond-buying program. This estimation is boosted further by the fact that the “great favorite” for the top chair of Fed, Yellen, is considered to be among the most dovish candidates and thus, she will probably toe a much likely stance to that of Bernanke.
Brent crude oil edged higher on Friday, erasing losses of over $1 in a run-up in the hour before the settlement as uncertainty over negotiations between the United States and Russia over Syria's chemical weapons put investors back on edge. The Brent crude futures contract for October rose 15 cents to $112.78 a barrel, after earlier touching a session low of $111.60. U.S. crude shed 39 cents to $108.21 a barrel, after hitting a session low of $107.23. The spread between the two benchmarks widened to $4.57, after narrowing to $3.93 earlier in the session. Brent has lost about 2.9 percent since last Friday. The international benchmark has slid about $5 a barrel since the end of August, when it jumped above $117 amid worries that a possible U.S. attack on Syria could lead to more violence in a region that pumps around a third of the world's oil. At the time writing the small metals wrap-up, both Crude and WTI are trading on the down side (WTI crude oil -0.8%, Brent crude oil -0.9%).
Furthermore, gold rebounded on Friday on late bargain hunting, but poor technical momentum, easing tensions with Syria and expectations that the U.S. Federal Reserve will unwind its monetary stimulus led to the metal's largest weekly loss since late June. Spot gold hit its lowest point since Aug. 8 at $1,304.56, and was last up 0.3 percent at $1,324.26 an ounce. U.S. gold futures for December settled down $22 at $1,308.60 an ounce. Despite active trading in the last two sessions, volume was only 10 percent above its 30-day average. What’s more, silver climbed 2.1 percent to $22.20 an ounce. It lost 7 percent this week, its biggest weekly loss since late June. At the time of writing, the metals are on opposite trends, (i.e. gold +0.4%, silver -0.2%.)
The dollar weakened against the euro and yen as investors adjusted positions ahead of the weekend and due to this week U.S. Federal Reserve policy setting meeting. After last Friday's weaker-than-expected U.S. non-farm payrolls data, many traders and analysts expect the central bank to announce a modest $10 billion reduction to its $85 billion monthly bond-buying program. This estimation is boosted further by the fact that the “great favorite” for the top chair of Fed, Yellen, is considered to be among the most dovish candidates and thus, she will probably toe a much likely stance to that of Bernanke.
Brent crude oil edged higher on Friday, erasing losses of over $1 in a run-up in the hour before the settlement as uncertainty over negotiations between the United States and Russia over Syria's chemical weapons put investors back on edge. The Brent crude futures contract for October rose 15 cents to $112.78 a barrel, after earlier touching a session low of $111.60. U.S. crude shed 39 cents to $108.21 a barrel, after hitting a session low of $107.23. The spread between the two benchmarks widened to $4.57, after narrowing to $3.93 earlier in the session. Brent has lost about 2.9 percent since last Friday. The international benchmark has slid about $5 a barrel since the end of August, when it jumped above $117 amid worries that a possible U.S. attack on Syria could lead to more violence in a region that pumps around a third of the world's oil. At the time writing the small metals wrap-up, both Crude and WTI are trading on the down side (WTI crude oil -0.8%, Brent crude oil -0.9%).
Furthermore, gold rebounded on Friday on late bargain hunting, but poor technical momentum, easing tensions with Syria and expectations that the U.S. Federal Reserve will unwind its monetary stimulus led to the metal's largest weekly loss since late June. Spot gold hit its lowest point since Aug. 8 at $1,304.56, and was last up 0.3 percent at $1,324.26 an ounce. U.S. gold futures for December settled down $22 at $1,308.60 an ounce. Despite active trading in the last two sessions, volume was only 10 percent above its 30-day average. What’s more, silver climbed 2.1 percent to $22.20 an ounce. It lost 7 percent this week, its biggest weekly loss since late June. At the time of writing, the metals are on opposite trends, (i.e. gold +0.4%, silver -0.2%.)