Written by Sumit Roy  |

October 05, 2012

Week In Review: Formidable $1800 Resistance Caps Gold, NatGas In Midst Of Winter Rally, Oil Plunges But Holds Support

Details

We examine the latest developments in commodity markets and the week's performance.

Commodities put in mixed performance this week, as metals and natural gas outperformed, while oil and agriculture underperformed. Stocks, as measured by the S&P 500, added almost 2 percent, taking year-to-date gains to almost 15 percent.

Macroeconomic Highlights

For the most part, economic data this week was on the positive side. Data from the Institute for Supply Management showed that the U.S. manufacturing sector unexpectedly bounced back from a three-month slump in September. ISM's manufacturing gauge rose from 49.6 to 51.5, putting it back above the 50 level that separates contraction from expansion.

Meanwhile, ISM said that its U.S. nonmanufacturing (services) index unexpectedly grew from 53.7 to 55.1 in September, putting it at the best level in six months.

Then today, the Bureau of Labor Statistics reported that 114K jobs were created in the month of September, equal to expectations. However, the unemployment rate unexpectedly dipped from 8.1 to 7.8 percent—the lowest level since January 2009. Meanwhile, August's job gain was revised higher, from 96K to 142K.

Outside the U.S., data was not as encouraging. China's official PMI Manufacturing Index rose from 49.2 to 49.8 in September, remaining just under the key 50 level. The equivalent gauge in the eurozone ticked up from 46 to 46.1, firmly in contraction territory.

Commodity Wrap