Written by Sumit Roy  |

February 08, 2012

Morning Call: Gold ($1747), Silver Advance; Copper Near 4½ Month Highs Amid Economic Optimism

Details

Sentiment in financial markets is positive today.

IN TODAY'S HEADLINES...

• News flow is light, but commodities are rising solidly as the uptrend in financial markets continues. The U.S. Dollar Index was last trading lower by 0.12 percent to 78.48.   
  
  
• The precious metals complex is up slightly today, with prices sitting just below recent multimonth highs. Gold was last trading higher by $1.42, or 0.08 percent, to $1746.90/oz, while silver added $0.20, or 0.59 percent, to $34.34. Platinum rose by $0.25, or 0.02 percent, to $1651.50 and palladium inched lower by $0.80, or 0.11 percent, to $709.20.
  
  "Should silver take out [$35.70], we will be in a technical breakout stage, possibly setting the complex up for a push to the $40 mark," said Edward Meir, an analyst at INTL FCStone.
  Gold on solid ground as Greece lifts euro
  
  
• Crude oil is rallying ahead of the EIA's Weekly Petroleum Status Report. Brent was last trading up by $0.49, or 0.42 percent, to $116.72/bbl, while WTI gained $1.07, or 1.09 percent, to $99.48. The less-authoritative API report showed a 4.5 mmbbl decline in crude oil inventories, a 4.4 mmbbl increase in gasoline inventories, and a 0.4 mmbbl increase in distillate inventories last week.
  Oil Gains a Second Day on Demand Outlook as API Says U.S. Stockpiles Drop
  
  
• Natural gas prices are lower by $0.02, or 0.85 percent, to $2.45/mmbtu as they hover about 10 percent above the recent $2.23 low. The latest weather forecasts remain bearish, with warmer-than-normal temperatures forecast for the major consumption regions of the United States.
  Americans Gaining Energy Independence With U.S. as Top Producer
  
  
• Grains are up across the board ahead of Thursday's supply and demand data from the USDA. Corn was last trading up by $0.05, or 0.75 percent, to $6.47/bushel, while soybeans gains $0.06, or 0.51 percent, to $12.38, and wheat rallies by $0.04, or 0.57 percent, to $6.66.
  
  "The trade seems quite intent upon seeing a report that has a relatively large cut in the corn carryout," said Dennis Gartman. "From what we've conjectured, it appears that the cut has to be at least 50 million to 60 million bushels from the department's report a month ago."
  Corn Gains Before USDA May Lower Estimates for Inventories; Soybeans Climb
  
  
• Prices for copper are up by $0.06, or 1.52 percent, to $3.94/lb on Comex—near 4½ month highs. "Base metals are very macro sensitive. The mood in the broader market has improved today and the market is grasping at any bit of positive news," said VTB analyst Andrey Kryuchenkov.
  Copper gains on strong euro, Greece deal eyed
  
  

What to Watch For:

10:30 a.m. EST: Weekly Petroleum Status Report