Written by Sumit Roy  |

April 30, 2012

Morning Call: Gold & Oil Drift Lower As Consumer Spending Rises, NatGas Near 1-Month High

Details

Most commodities fall modestly as traders await guidance from this week's jobs report.

IN TODAY'S HEADLINES...

Commodities and stocks are kicking off the new week slightly to the downside today. Traders may be opting to take a cautious stance ahead of U.S. labor market data later this week — first from ADP on Wednesday, then from the government on Friday.

In today's news, the Bureau of Economic Analysis reported that consumer spending rose by 0.3 percent in March, slightly below the 0.4 percent that was expected, while personal income rose by 0.4 percent, above the 0.3 percent that was anticipated.

• Gold was last trading lower by $3.60, or 0.22 percent, to $1659.15/oz, while silver shed $0.26, or 0.84 percent, to $31. Platinum inched lower by $0.50, or 0.03 percent, to $1572 and palladium shed $1.75, or 0.26 percent, to $681.50.
  
  "We had the GDP data from the United States [last Friday], which [fueled] higher hopes of quantitative easing," LGT Capital Management analyst Bayram Dincer said. "Analysts have really decreased [their expectations for QE], but I feel if the conditions are right, we can still see some sort of quantitative easing."
  Gold holds near $1660/oz on monetary easing talk
  
  
• Crude oil prices are modestly lower today, as Brent sheds $0.52, or 0.43 percent, to $119.31, while WTI loses $0.79, or 0.75 percent, to $104.14.
  
  "Oil prices are faring surprisingly well given the signs of easing of the Iran crisis and a slowdown in economic growth in the U.S. and China, the two leading consumers of oil," said analysts at Commerzbank.
  Crude Down as Spain Woes, Eurozone Data Weigh
  
  
• Natural gas is slightly lower today, but holding near one-month highs today. Prices were last trading to the downside by $0.01, or 0.55 percent, to $2.17/mmbtu. Resistance lies at former support near the $2.23 level.
  Cheap natural gas drives down coal industry
  
  
• The grain complex is taking a breather today after surging last week on the back of news of substantial purchases by China. Corn was last trading unchanged at $6.53/bushel, while soybeans shed $0.10, or 0.67 percent, to $14.86, and wheat lost $0.04, or 0.62 percent, to $6.38.
  
  "I'm not sure if this export news is going to allow us to go much higher," a French trader said. "The soybean purchases were in the works for a while, we know there is a crop problem in South America while Chinese needs are growing."
  US corn, soy off highs
  
  
• Copper prices were last trading down by $0.01, or 0.37 percent, to $3.81/lb on Comex today after spiking last week on optimism about China's economy.
  
  "We believe the copper stock build in China has come to an end, and refined copper inventory will decline over the next quarter as a result of improving demand from China," said analysts at Macquarie Commodities Research.
  Copper shaken from 1-month high as dollar rises
  
  

What to Watch For:

8:30 a.m. ET: Personal Income/Spending (March)

9:00 p.m. ET: China PMI Manufacturing (April)