Written by Sumit Roy  |

December 28, 2012

Week In Review: WTI Rises On Pipeline Boost, Gold Pauses on ‘Fiscal Cliff’ & NatGas In Crucial Period

Details

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

Commodities were narrowly mixed ahead of last-minute negotiations to avert the "fiscal cliff" in the United States. Stocks, as measured by the S&P 500, fell 1 percent in the period, taking their year-to-date gain to 12.2 percent.

Macroeconomic Highlights

As has been the case in recent weeks, economic data flow in the U.S. continued to be positive this week. Nevertheless, the fast-approaching "fiscal cliff" dampened investor sentiment.

President Barack Obama is meeting with congressional leaders today in an effort to hammer out a last-minute mini deal that would help the economy avoid the worst of the tax hikes and spending cuts associated with the cliff.

Sources close to the negotiations say a deal is possible. But the passage of any bill hinges on whether House Speaker John Boehner allows a vote in his chamber of Congress in the face of protest from some on the right wing of his Republican Party. Similarly, Minority Leader Mitch McConnell will have to agree to refrain from filibustering, or delaying, a vote in the Senate.

Meanwhile, investors received more good news on the housing front this week. S&P/Case-Shiller said that U.S. home prices rose by 0.66 percent in October, the ninth-straight monthly gain. Prices were up 4.31 percent year-over-year in the month.

New home sales in November rose 4.4 percent to 377K units annualized. That's up 15 percent from a year ago and the best level since April 2010. Finally, the National Association of Realtors said that pending home sales rose 1.7 percent in November to the highest level in 2 1/2 years.

Commodity Wrap