Gold Holds Decline as Rising Dollar, Record Stocks Curb Demand

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Gold held the biggest drop in two weeks as the dollar traded at a decade-high and U.S. equities advanced to records, cutting demand for a protection of wealth. Palladium retreated from the highest level since September.

Bullion for immediate delivery was at $1,208.05 an ounce at 8:28 a.m. in Singapore from $1,206.83 on Monday, when the price lost 0.5 percent, according to Bloomberg generic pricing. The metal is 2 percent higher this year.

The Bloomberg Dollar Spot Index rose to its highest level in more than 10 years on Tuesday after a measure of U.S. consumer purchases increased in January, a sign the plunge in gasoline is helping boost the biggest part of the U.S. economy. The Nasdaq Composite Index closed above 5,000 for the first time in 15 years on Monday, while the Dow Jones Industrial Average and Standard & Poor’s 500 Index reached records.

Gold for April delivery lost 0.1 percent at $1,207.40 on the Comex. Silver for immediate delivery was 0.3 percent higher at $16.439 an ounce after dropping 1.2 percent on Monday, while spot platinum slid 0.3 percent to $1,187 an ounce.

Palladium dropped 0.2 percent to $828.22 an ounce. The price advanced on Monday to $833.30, the highest level since Sept. 18, as it gained for a sixth straight day.

Source: Bloomberg

Oil Trades Below $50 as U.S. Crude Stockpiles Seen Swelling Glut

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Oil traded below $50 a barrel before U.S. government data forecast to show crude inventories increased further from a record level.

Futures were 0.5 percent higher in New York. Stockpiles probably expanded by 3.95 million barrels last week, according to a Bloomberg News survey before an Energy Information Administration report on Wednesday. They climbed over the prior seven weeks to 434.1 million, the most in records compiled by the EIA dating back to August 1982.

Rising U.S. supplies contributed to a supply glut that drove prices almost 50 percent lower in 2014. West Texas Intermediate may fall as low as $32 a barrel as support from heating-oil demand fades as winter ends, Bank of America Corp. said in a research note Monday.

WTI for April delivery rose as much as 42 cents to $50.01 a barrel in electronic trading on the New York Mercantile Exchange and was at $49.82 at 10:48 a.m. Sydney time. The contract slid 17 cents to $49.59 on Monday.

Brent for April settlement dropped $3.04, or 4.9 percent, to $59.54 a barrel on the London-based ICE Futures Europe exchange on Monday. The European benchmark crude ended the session at a premium of $9.95 to WTI. It closed at $12.82 on Feb. 27, the widest gap since January 2014.

Source : Bloomberg

Asian Stocks Follow U.S. Shares Higher on Consumer Spending, Yen

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Asian stocks rose after U.S. equities climbed to records as rising consumer spending signaled strength in the world’s largest economy. Japanese shares gained after the yen weakened.

The MSCI Asia Pacific Index advanced 0.1 percent to 146.31 as of 9:02 a.m. in Tokyo. The Topix index added 0.4 percent. Both the Standard & Poor’s 500 Index and the Dow Jones Industrial Average rallied to all-time highs as data showed U.S. consumer purchases rose 0.3 percent in January, adjusted for inflation, adding to signs the recovery is on a strong footing as the Federal Reserve assesses inflation and jobs data to gauge the timeline for raising interest rates.

Japan’s Nikkei 225 Stock Average climbed 0.4 percent as the yen held Monday’s 0.4 percent loss to trade at 120.17 per dollar.

Source : Bloomberg

Japan Stocks Rise as Weaker Yen, U.S. Spending Boost Exporters

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Japanese stocks rose for a fourth day as the yen fell and U.S. consumer spending increased, boosting the outlook for exporters to the world’s biggest economy.

The Topix index added 0.4 percent to 1,530.89 as of 9:01 in Tokyo, after closing yesterday at the highest level since December 2007. All but five of its 33 industry groups rose. The Nikkei 225 Stock Average advanced 0.4 percent to 18,896.58, extending a 15-year high. The yen fell 0.1 percent to 120.21 per dollar, weakening for a fourth day.

Futures on the Standard & Poor’s 500 Index were little changed after the underlying U.S. gauge added 0.6 percent in New York on Monday as a Commerce Department a report showed purchases adjusted for inflation rose 0.3 percent in January after falling 0.1 percent the prior month.

The spending report drove gains in the dollar against the yen as speculation increased that the Federal Reserve will raise interest rates before year end. Fed Chair Janet Yellen said last week the timing of any increase in borrowing costs will depend on economic data.

Shares of Sharp Corp. were suspended pending clarification of a report in the Nikkei newspaper that the company will seek investment from its lenders, including a 150 billion yen ($1.25 billion) debt-for-equity swap. Sharp said it is considering options to restructure operations and no decision has been made.

Source: Bloomberg

Nasdaq Composite Rallies, Tops 5,000 for First Time in 15 Years

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The Nasdaq Composite Index closed above 5,000 for the first time in 15 years while the Dow Jones Industrial Average and Standard & Poor’s 500 Index reached records as gains in consumer purchases signaled strength in the biggest part of the economy.

The Nasdaq Composite added 0.9 percent to 5,008.10 at 4 p.m. in New York. The S&P 500 climbed 0.6 percent to a record 2,117.18, and the Dow advanced 153.29 points, or 0.9 percent, to 18,285.99, also an all-time closing high. The Russell 2000 Index rose 0.7 percent to a record 1,242.48.

The S&P 500 reached fresh records four times in February, while the Dow average climbed 5.6 percent for its best month since January 2013. The index also topped its record from December for the first time in 2015.

Source: Bloomberg