WTI Drops From 9-Month High as Gains Seen Excessive; Brent Falls

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West Texas Intermediate fell as a technical indicator shows last week��s increase to the highest price in nine months was excessive. Brent in London dropped amid speculation Iraqi forces will slow the advance of insurgents.

Futures slid as much as 0.3 percent in New York. WTI��s relative strength index closed above 70 for a third day yesterday, signaling prices rose too quickly to sustain further gains, data compiled by Bloomberg show. Iraq��s army pummeled the positions of Sunni Muslim insurgents who have captured large chunks of territory in the country��s north as the U.S. weighed a military intervention to help the government.

WTI for July delivery fell as much as 32 cents to $106.58 a barrel in electronic trading on the New York Mercantile Exchange and was at $106.66 at 1:34 p.m. Sydney time. The contract lost 1 cent yesterday after ending last week��s trading at $106.91, the highest close for the front month since Sept. 18. The volume of all futures traded was about 18 percent below the 100-day average. Prices are up 8.4 percent this year.

Brent for August settlement dropped as much as 33 cents, or 0.3 percent, to $112.61 a barrel on the ICE Futures Europe exchange. The European benchmark crude traded at a premium of $6.60 to WTI for the same month, compared with $6.64 yesterday.

Source : Bloomberg

Gold Trades Below 3-Week High Before Fed Meeting as Iraq Weighed

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Gold traded below a three-week high before the U.S. Federal Reserve begins a two-day policy meeting today and as investors assessed the tension in Iraq and Ukraine.

Gold for immediate delivery traded at $1,272.69 an ounce by 9:05 a.m. in Singapore from $1,272 yesterday, according to Bloomberg generic pricing. Bullion climbed to $1.284.96 yesterday, the highest level since May 27, then erased gains as U.S. data showed factory output beat estimates while builder sentiment jumped by the most in almost a year.

Gold has climbed 5.9 percent this year after halting a 12-year bull run in 2013 on expectation that the Fed would trim monetary stimulus as the U.S. economy improved. Policy makers have cut asset purchases four times this year.

Gold for August delivery traded at $1,272.80 an ounce on the Comex in New York from $1,275.30 yesterday. Futures capped the longest rally since February yesterday as fighting in Iraq intensified and relations between Ukraine and Russia worsened.

Silver for immediate delivery increased 0.1 percent to $19.6895 an ounce. Platinum added 0.2 percent to $1,438.13 an ounce, and palladium rose 0.5 percent to $814.50 an ounce.

Source : Bloomberg

Yen Near Four-Month High Against Euro as Investors Seek Safety

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The yen was about 0.4 percent from the strongest level in four months against the euro amid escalating violence in Iraq and speculation U.S. data will underscore weakness in the world��s largest economy.

The Bloomberg Dollar Spot Index yesterday matched the lowest close this month before Federal Reserve officials begin a two-day gathering and after the International Monetary Fund cut its U.S. growth outlook. Australia��s dollar was within one U.S. cent of its strongest level in 2014 before the Reserve Bank publishes minutes of its June meeting. The pound was near a five-year high as prospects the Bank of England is moving closer to raising borrowing costs spurred demand for the currency.
The yen was little changed at 101.93 per dollar as of 9:12 a.m. in Tokyo after climbing 0.2 percent in New York. It touched 101.61 on June 12, the strongest since May 30. Japan��s currency was at 138.39 per euro from 138.22 yesterday, when it gained to 137.71, a level unseen since February. The dollar traded at $1.3577 versus its European peer after sliding 0.3 percent to $1.3574 yesterday.

The Bloomberg Dollar Spot Index was little changed at 1,011.79 after falling 0.1 percent yesterday to 1,011.61, matching the lowest close since May 30.

Source : Bloomberg

Gold Futures Cap Longest Rally Since February Amid Iraq Tumult

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Gold capped the longest rally in almost four months as intensifying unrest from Iraq to Ukraine increased demand for the precious metal as a haven.

Bullion has climbed 6.1 percent this year partly because of tension in Ukraine, which said today that natural gas supplies had been cut off by Russia amid worsening relations between the two countries. Iraq��s army killed more than 279 fighters from the Islamic State in Iraq and the Levant and destroyed 50 of the group��s vehicles within 24 hours, military spokesman Qassim Ata said yesterday.

Gold futures for August delivery increased 0.1 percent to settle at $1,275.30 an ounce at 1:46 p.m. on the Comex in New York. The metal touched $1,285.10, the highest for a most-active contract since May 27, and has gained for six straight sessions, the longest rally since Feb. 18.

Trading was 33 percent below the average for the past 100 days for this time, according to data compiled by Bloomberg.

Copy Source: Bloomberg