Written by Sumit Roy  |

July 11, 2012

Morning Call: Gold Edges Higher To $1575 As Dollar Falls, Oil Up, Grains Surge After USDA Report

Details

• Gold and silver are higher today. The yellow metal was last trading up by $8.33, or 0.53 percent, to $1575.60/oz, while the gray metal edged up by $0.26, or 0.96 percent, to $27.08.
  
  Platinum edged down by $0.50, or 0.04 percent, to $1424 and palladium added $3.22, or 0.56 percent, to $578.72.
  
  "Gold will probably remain rangebound. Without QE3, the pressure on the upside stays," said Peter Fung, head of dealing at Wing Fung Precious Metals.
  Gold gains, off 1-1/2 week low; dollar weighs
  
  
• Crude oil is higher ahead of the EIA's Weekly Petroleum Status Report. The less-authoritative API report showed that crude inventories fell by 0.7 mmbbl, gasoline inventories rose by 2.5 mmbbl, and distillate inventories fell by 0.7 mmbbl last week.
  
  Brent was last trading up by $0.87, or 0.89 percent, to $98.84, while WTI rose by $1.12, or 1.33 percent, to $85.03.
  Oil Gains From One-Week Low as U.S. Crude Stockpiles Drop
  
  
• Natural gas is little changed today. Prices were last trading at $2.74/mmbtu, a gain of 0.11 percent. Weather forecasts continue to indicate warmer-than-normal temperatures across the United States over the next two-week period.
  EIA raises 2012 US natgas output, consumption growth estimates
  
  
• Grains are rising after the USDA cut its outlook for supplies in a report today, as adverse weather conditions in the U.S. Midwest continue to take a toll on crops in the region.
  
  The department now sees farmers harvesting 12.97 billion bushels of corn, down from the prior estimate of 14.79 billion. Stocks of corn before 2013 harvest may total 1.183 billion bushels, down from the prior forecast of 1.881 billion.
  
  Soybeans production may total 3.056 billion bushels, down 155 million bushels from the prior forecast.
  
  Corn was last trading up by $0.19, or 2.5 percent, to $7.80/bushel, while soybeans rallied by $0.19, or 1.12 percent, to $16.67 and wheat rose by $0.26, or 3.26 percent, to $8.31.
  Corn Gains Before USDA Report That May Cut Crop Outlook
  
  
• Copper was last trading at $3.41/lb on Comex, a gain of $0.01, or 0.38 percent.
  
  "Markets are really quiet, there's no conviction in any direction. Investors are very uncommitted and consumers are away from the market because summer trade has started," analyst Stephen Briggs of BNP Paribas said. "People are waiting for something concrete to happen in terms of the Fed, endless drama in Europe, and China's GDP," he added.

• Copper treads water; global growth worries weigh
  
  

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