Written by Drew Voros  |

October 29, 2012

Morning Call: Gold Steady, Silver Falls On Light Trading As US Stocks Market Close Because Of Storm

Details

Commodities trade mixed as U.S. stocks markets close.

While commodities traded as normal this morning, U.S. stock markets will be closed today and possibly Tuesday, as Hurricane Sandy hits the East Coast of the United States. Emergency officials are bracing for significant disruptions, possible flooding and damage due to high winds and torrential rainfall from the huge storm expected to reach land tonight.

The exchanges opted for a complete shutdown after contemplating allowing electronic trading venues to remain open for business, concluding that a partial shutdown might create more problems than it would solve, the Wall Street Journal reported.

The Nasdaq said in an email communique on Sunday evening that it would make a decision on whether to remain closed on Tuesday at “a future time.” The Journal noted that the closures were the first unscheduled shutdowns of U.S. financial markets since the September 2001 terror attacks.

Commodities traded mixed, with energy and precious metals generally down and grains rising.

The U.S. Dollar Index climbed near a six-week high as pressured mounted on Spain to request aid.

• Gold prices were steady this morning while other precious metals fell. The yellow metal rose slightly to $1711.75, adding $0.45, or 0.003 percent, while silver dropped $0.19, or 0.62 percent, to $31.89. Platinum lost $6.76, or 0.44 percent, to $1538.24 and palladium shed $6.30, or 1.05 percent, to $591.70
  
  Swiss-based LGT Capital Management said today, “Gold is still range-bound, lacking any upside drivers above $1,725 an ounce. The lower range of $1,700 is perceived as a good support.”
  Gold Swings Between Gains and Losses on Physical Demand, Dollar

• Crude oil was mixed, as refineries along the Eastern Seaboard closed before Hurricane Sandy struck, curbing demand. Brent was up $0.45, or 0.41 percent, to $110 while WTI fell $0.24, or 0.28 percent, to $86.04.
  
  “The crude supply situation has improved, and high inventories are capping prices,” said Michael Poulsen, an analyst at Denmark-based Global Risk Management, who predicts that Brent will trade from $105 to $110 a barrel next month. “But we should watch out for Super-Storm Sandy, as refineries are being shut while the storm rages.”
  Oil Slides, Gasoline Gains as Hurricane Sandy Nears U.S.

• Natural gas prices were rising, as demand was seen picking up on the back of the historic storm bearing down on the East Coast. Prices rose $0.016, or 0.47 percent, to $3.416/mmbtu.

• The grain complex was mixed, as the U.S. Department of Agriculture reported lower-than-expected export sales of corn and soybeans, while wheat exports beat estimates. 
  
  Corn rose $0.037, or 0.51 percent, to $7.415/bushel, and wheat rose $0.045, or 0.52 percent, to $8.68/bushel. Soybeans fell $0.14, or 0.90 percent, to $15.47.

• Copper was underperforming this morning, losing $0.042, or 1.18 percent, to $3.416/lb, reflecting nervousness in a range of markets ahead of Friday's U.S. employment figures and next week's U.S. presidential election.
  
  "LME copper is getting hammered by a general risk off mode due to political uncertainty," said Gianclaudio Torlizzi, a partner at the metals consultancy T-Commodity.
  Copper Falls in Nervous Trade

Notes:

U.S. stock markets closed Monday due to Hurricane Sandy. Bond market open half-day.