Gold Falls as U.S. Economic Data Fuels Bets on Fed Rate Increase

---

Gold fell to near a five-year low as stronger-than-expected U.S. economic data boosted speculation that the Federal Reserve will raise interest rates before the end of this year, damping the metal’s appeal as a store of value.

Orders for business equipment in the U.S. climbed more than economists forecast in October, indicating steady domestic demand, and jobless claims dropped to the lowest in a month. The data add to signs the economy may be strong enough to withstand higher rates, which damp the appeal of gold because it doesn’t pay interest, unlike competing assets.

Gold has fallen the last five weeks, the longest stretch of losses since July. Fed-fund futures show a 74 percent change that officials will tighten monetary policy by their Dec. 15-16 meeting. San Francisco Fed President John Williams said on Saturday that there’s a “strong case” for a December rate increase if U.S. data hold up.

Gold futures for February delivery dropped 0.3 percent to settle at $1,069.70 an ounce at 1:42 p.m. on the Comex in New York. The metal touched a five-year low of $1,062 on Nov. 18.

Holdings in gold-backed exchange-traded products fell for a fifth straight day to 1,494.28 metric tons on Tuesday, data compiled by Bloomberg show. Assets are at the lowest since February 2009.

Silver futures for March delivery slid 0.1 percent to $14.175 an ounce on the Comex.

Source: Bloomberg

Oil Declines as U.S. Crude Supplies Gain While Rig Count Drops

---

Oil declined after crude inventories climbed to the highest level for November since 1930 even as explorers idled more drilling rigs.

Crude supplies rose 961,000 barrels to 488.2 million last week, according to an Energy Information Administration report Wednesday. The number of active oil rigs fell to 555, the least in five years, data compiled by Baker Hughes Inc. show. Prices climbed 2.7 percent on Tuesday after Turkey shot down a Russian jet and Saudi Arabia repeated its willingness to stabilize world markets.

WTI for January delivery declined 21 cents, or 0.5 percent, to $42.66 a barrel at 1:51 p.m. on the New York Mercantile Exchange. The contract rose to $42.87 on Tuesday, the highest settlement since Nov. 11. The volume of all futures traded was 15 percent below the 100-day average.

Brent for January settlement fell 26 cents, or 0.6 percent, to $45.86 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a $3.20 premium to WTI.

Source: Bloomberg

Japan Stocks Rise on Yen as U.S. Data Bolster Case for Fed Hike

---

Japanese stocks rose as U.S. economic data provided more support for the Federal Reserve to raise interest rates next month, boosting the dollar against the yen.

The Topix index climbed 0.4 percent to 1,601.12 as of 9:01 a.m. in Tokyo, with insurers leading gains while paper makers declined. The Nikkei 225 Stock Average added 0.5 percent to 19,951.19, near a three-month high. The yen traded at 122.69 per dollar after weakening on Wednesday as a report showed U.S. durable goods orders rose more than expected.

The dollar gained after orders for non-military capital goods excluding aircraft rose 1.3 percent, the most in three months. Traders are pricing in a 72 percent chance of a rate hike at the Fed meeting on Dec. 15-16.

E-mini futures on the Standard & Poor’s 500 Index added 0.1 percent after the underlying gauge closed little changed. U.S. trading was light ahead of Thursday’s Thanksgiving holiday in the U.S.

Source: Bloomberg

Most Asian Stock Futures Rise Amid Oil Rally; Dollar Holds Gains

---

Most Asian index futures signaled a rebound following light pre-Thanksgiving trading in the U.S., while the dollar maintained gains.

With U.S. markets shut for the holiday Thursday and calls for an easing in tensions between Russia and Turkey, the Standard & Poor’s 500 Index meandered last session, closing little changed for a third day. Futures on stock gauges in Japan and Hong Kong rose, while those on Australian shares slipped amid early declines in New Zealand equities. The greenback held near a seven-month high versus the euro as investors mulled the likely divergence in global monetary policy. U.S. crude oil was back above $43 a barrel.

The S&P/NZX 50 Index in Wellington lost 0.1 percent by 7:43 a.m. Tokyo time, following the S&P 500’s drop of less than 0.1 percent. Futures on Australia’s S&P/ASX 200 Index were down 0.3 percent in most recent trading, while those on the the Nikkei 225 Stock Average were up 0.5 percent in Osaka amid a retreat in the yen.

Futures on Hong Kong’s Hang Seng and Hang Seng China Enterprises indexes climbed 0.3 percent, and those on the FTSE China A50 Index were up 0.1 percent in Singapore. Kospi index futures in Seoul were little changed.

Thailand also reports on car sales Thursday and Hong Kong issues data on trade. An update on Indonesian money supply is due.

Source: Bloomberg

S&P 500 Closes Little Changed Amid Data as Energy Shares Retreat

---

U.S. stocks closed little changed in light pre-holiday trading, with equities hovering near three-week highs as investors weighed mixed economic data and weakness in commodities.

The Standard & Poor’s 500 Index roamed in a narrow range for a third day, following the index’s strongest week this year. Declines in energy and raw-materials shares were offset as Pfizer Inc. climbed 2.8 percent to lead health-care companies higher. Macy’s Inc. gained 1.9 percent to pace an increase among a group of retailers, which rose for the seventh time in eight days.

The S&P 500 fell less than 0.1 percent to 2,088.92 at 4 p.m. in New York, with the gauge holding in its tightest intraday range in six months. This was the week’s final full trading session as U.S. markets will be closed Thursday in observance of the Thanksgiving Day holiday, and equity markets close at 1 p.m. on Friday.

A report today showed orders for U.S. business equipment climbed more than forecast in October, indicating steady domestic demand is encouraging corporate investment even as global sales waver. Separate data showed household spending rose less than forecast in October, while income gains accelerated.

Source: Bloomberg