Crude Falls for Second Day on Jobless Claims.
West Texas Intermediate crude fell for a second day as more Americans than projected filed applications for unemployment benefits last week and the euro weakened against the dollar. Prices dropped as much as 1.8 percent as jobless claims rose to 385,000, the highest level since Nov. 24, the Labor Department reported. The median forecast was 353,000 in a Bloomberg survey. The euro slumped to a four-month low against the dollar after European Central Bank President Mario Draghi said monetary policy in the currency bloc will remain accommodative for as long as needed. “The economic numbers are not good, especially on the jobs front, and people are very skittish,” said Tariq Zahir, a New York-based commodity fund manager at Tyche Capital Advisors. “You are seeing this massive strength in the dollar and oil is definitely correlated with currencies now. We are going to see continued weakness in oil.” WTI oil for May delivery fell $1.54, or 1.6 percent, to $92.91 a barrel at 9:23 a.m. on the New York Mercantile Exchange. It closed at $94.45 yesterday, the lowest settlement since March 22. Trading was 82 percent above the 100-day average for the time of day. Brent crude for May settlement declined 86 cents, or 0.8 percent, to $106.25 a barrel on the London-based ICE Futures Europe exchange. It ended yesterday at the lowest settlement since Dec. 7. Trading was 87 percent above the 100-day average. The European benchmark grade’s premium to WTI widened to as much as $13.49 from $12.66 yesterday, the narrowest since June. U.S. jobless claims rose by 28,000 in the week ended March 30, the Labor Department said today in Washington. The four-week average of claims increased to 354,250 from 343,000.
Gold Imports by India Seen Climbing as Bullion Nears Bear Market.
Gold imports by India, the world’s largest bullion buyer, may increase 31 percent this quarter after prices dropped to a 10-month low and festivals and weddings spur sales of jewelry, a trade group said. Purchases may climb to 200 metric tons in the three months through June from 153 tons a year earlier, Bachhraj Bamalwa, a former chairman and member of the All India Gems & Jewellery Trade Federation, said in a phone interview today. Imports probably were 225 tons to 250 tons last quarter, compared with 228 tons a year earlier, he said. Gold is nearing a bear market after 12 years of gains on concern that investors are seeking higher returns in other assets as the global economy recovers. That’s stoking demand among jewelers and traders in India even after the government tripled tax on gold imports since start of 2012 to moderate demand. UBS AG’s index of Indian physical gold demand “was well above average and one of the best days we’ve seen in months,” analyst Joni Teves said in a report today. Gold for immediate delivery lost as much as 1.1 percent to $1,540.29 an ounce, the lowest level since May 30, and was at $1,542.86 at 3:28 p.m. in Mumbai. The metal has slumped 18.8 percent from its record close of $1,900.23 in September 2011, nearing the 20 percent that typically defines a bear market. Futures on the Multi Commodity Exchange of India Ltd. (MCX) have fallen for seven straight months, closing at 29,238 rupees per 10 grams yesterday, the lowest settlement price since July 19.
Copper Falls for Fourth Day on Concern Demand Has Yet to Rebound.
Copper, trading at the lowest price since August in London, fell for a fourth day on concern demand shows few signs of reviving as stockpiles of the metal swell. Figures today will show U.S. service industries, ranging from housing to retailing, expanded at a slower pace last month, economists surveyed by Bloomberg said.
Manufacturing in the euro zone shrank for a 20th month, according to a report yesterday. Copper inventories monitored by the London Metal Exchange are the highest since October 2003. Copper for delivery in three months declined 0.3 percent to $7,443 a metric ton by 10:59 a.m. on the LME. Prices reached $7,404.50, the lowest since Aug. 20. Copper for delivery in May fell 0.5 percent to $3.3625 a pound on the Comex in New York. The Standard & Poor’s 500 Index (SPX) of U.S. shares closed at a record high yesterday and is up 10 percent this year, while the LME Index of the six main industrial metals traded in London has dropped 6.8 percent in 2013. The Institute for Supply Management’s U.S. services index will come in at 55.5 for March, down from 56 in the prior month, the survey showed. Copper inventories tracked by the LME rose for a 33rd session to 572,325 tons, daily exchange figures showed. Stocks monitored by the Shanghai Futures Exchange fell to 241,943 tons this week, according to figures today. The Chinese market will be shut tomorrow and April 5 for national holidays. Orders to remove copper from LME warehouses increased 3.7 percent to 120,975 tons. They jumped 87 percent in the past week to the highest since February 2004. Zinc advanced in London after reaching this year’s lowest price yesterday and lead gained from today’s 2013 low. Tin, nickel and aluminum dropped.
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