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Precious Metal Ends Lower, Copper jumps 7% on US Jobs Data

Yellow metal futures finished with a modest loss on Friday as greater than expected US employment numbers dulled the gold’s safe-haven appeal.

For the week, bullion found support from the European Central Bank’s decision to cut interest rates and from strength in physical demand to end the week 0.7% advanced.

Precious metal for June delivery chop down $3.40 or 0.2%, to settle at $1,464.20 per ounce on the Comex division of the New York Mercantile Exchange.

Labor Department said on Friday that the US economy created a net 165,000 jobs in April. The figure surpassed the 135,000 prediction of economists. The rushing in hiring nudged the unemployment rate down to 7.5%, the lowest level since December 2008.

Right before the data’s release yellow metal prices were trading about $13 per ounce higher than Thursday’s close, then following the figures they fell to trade around $10 lower.

Copper futures rallied almost 7% for their biggest one day percent advance in over two and a half years, as the jobs statistics brightened demand prospects for the industrial metal.

The July silver contract added 18 cents, or 0.8%, to end at $24.01 per ounce, climbed 1% from a week ago.

Chintan Karnani, an independent bullion analyst based in New Delhi said that if hiring continues to increase at the current pace for the coming two to three months that would be bearish for safe havens like silver and gold.

He further said only the interest rate cut by the European Central Bank and firm physical gold demand in Asia are supporting gold prices.

Gold dealers reported impressive jumps in April precious metal sales.

Will Rhind, managing director of ETF Securities, a provider of physically backed gold ETFs including the ETFS Gold Trust stated request is mainly being seen by coin/bar merchants and gold dealers (bullion banks) that act on behalf of central banks and other great institutional physical players.

Copper for delivery in July jumped 21 cents or 6.8% to a three-week high of $3.315 a pound. It rose approximately 4% for the week.



President Barack Obama Chides Lawmakers Over Flight Delay Fix, Budget Conflict

President Barack Obama chided Republicans on Saturday for approving a plan to ease air-traffic delays caused by federal spending cuts while leaving budget cuts that affect children and the elderly untouched.

The House of Representatives and the Senate backed a plan this week to give the Department of Transportation flexibility to cover immediate income of air traffic controllers at the Federal Aviation Administration who had been furloughed as part of budget cuts known as sequester.

The furloughs which started Sunday led to take off and landing delays at airports nationwide.

This week, the sequester hurt travelers, who were stuck for hours in airports and on planes, and correctly frustrated by it. And, maybe as they fly home each weekend, the members of Congress who insisted these cuts take hold finally realized that they really apply to them too, Obama stated in his weekly radio and Internet address.

So Congress passed a provisional fix. A Band Aid however these cuts are scheduled to keep falling across other parts of the government that provide vital services for the American people.

In his address, broadcast on Saturday morning Obama renowned that the cuts were affecting social programs and should be restore with less arbitrary spending reductions.

There is only one way to really fix the sequester, by swapping it before it causes further damage, Obama said that he hoped members of Congress would feel the same sense of urgency they felt with the FAA cuts on other programs.

They may not feel the pain felt by kids kicked off Head Start or the 750,000 Americans projected to lose their jobs as of these cuts, or the long-term unemployed who will be further hurt by them. Although that pain is real.


Conservatives Aim to Defeat Immigration Bill by Stressing Economy

As a bipartisan Senate group worked over the past few months to assemble broad legislation to renovate the US immigration system, conventional critics of the effort kept a fairly low profile, that’s about to change.

Critics of the bipartisan Gang of Eight immigration bill are gearing up for an strong fight to defeat the bill and they plan to placed the economy at the center of their strategy.

The debate on Capitol Hill over the bill will kick off Friday with a hearing in the Senate Judiciary board. Conservatives held back until details of the legislation appeared and currently intend to stir grassroots opposition through social media and talk radio between other lobbying efforts.

Roy Beck, head of NumbersUSA, a group that favors low immigration levels said that everything in this bill says we have a labor shortage. It’s suggest adding millions more foreign workers over the next decade alone, we have 20 million Americans who can’t find a full time job. It’s as if the Gang of Eight lives in swap universe.

Beck took aim at a provision that would permit many of the roughly 11 million undocumented immigrants to get provisional visas, giving them the right to live and work in the country for 13 years prior to becoming eligible for citizenship.

Many foes of the immigration bill view their most efficient line of attack to be warnings regarding the costs of the legislation and its impact on an already weak US labor market.

Some lawmakers and activists have derided the bill as an amnesty for lawbreakers however by emphasizing the law enforcement argument, conservatives risk fueling a insight that they are anti immigrant.

Republicans are also mindful of their party’s low standing with Hispanic Americans and cautious of stirring backlash with these voters.

Jim DeMint, Former South Carolina Senator who now heads the conservative Heritage Foundation believe tank, attacked the bill as amnesty accumulating that it would incur significant costs to taxpayers.


Gold Fall as Fund Shift Observe Intact, TOCOM up on yen

Yellow metal dropped on Monday following rising by the most since November in the previous trading session on poor US jobs data with funds expected to carry on cutting bullion holdings for superior investment yields elsewhere.

Precious metal jumped nearly 2 percent on Friday following statistics showed US employers hired at the slowest pace in nine months in March, backing expectations the Federal Reserve will maintain its bullion boosting monetary stimulus programme.

However gold futures in Tokyo jumped approximately 5 percent to near all time highs following the yen slump to near four year lows on reports that the Bank of Japan would begin buying longer dated bonds instantly to beat deflation.

Joyce Liu, investment analyst at Phillip Futures said that Monday’s price fall shows the fund swing out of precious metal remains intact with the US economy usually expected to perform better in the longer term.

Spot gold slide 0.2 percent to $1,579.06 per ounce by 0309 GMT, also hurt by a firmer dollar against a basket of currencies.

People are actually pulling funds out of precious metal for better investments such as equities and real estate in emerging economies.

The kind of rally that we observe from 2009 to 2011 is no longer going to be there anymore, we are more or less used to having so much money flowing around in the economy.

Liu stated she perceive gold testing a support level of $1,530 per ounce possibly over the coming two weeks.

Gold hit a 10-month low of about $1,539 per ounce previous week and is down almost 6 percent this year.

Evan Lucas, IG Markets strategist said in a note to clients Sunday that the yellow metal was a major beneficiary of this data, because the less than expected jobs numbers saw a slight jump back into safe havens.

Precious metal finished Friday’s session with the climb of $23.50 or 1.5%, at $1,575.90 per ounce on the Comex division of the New York Mercantile Exchange, following the US Labor Department said the economy created 88,000 new jobs in March. That consequence was sharply lower than the 190,000 new jobs.

Gold future for June delivery climbed $1 or 0.1%, during Asian trading to $1,576.90 per ounce.


Gold Rallies as Weak US jobs Statistics Affirms Federal Reserve Easing

Precious metal rallied over 1.5 percent on Friday, its highest one day addition since November, because disappointing US job statistics fueled expectations the Fed will carry on its bullion friendly bond purchases.

The metal break it’s three consecutive days of sharp losses following the Labor Department stated US employers in March hired at the slowest rate in nine months, adding just 88,000 non-farm posts. Heavy bullion short covering and quick losses in US equities also lifted gold prices.

Yellow metal is used by many as a hedge against inflation which can be brought on by central banks monetary stimulus. Gold still lost over 1 percent for the week for one of its sharpest weekly turn down since the start of the year.

The weak jobs statistics condensed the chance the Fed would change its current $85 billion monthly purchases of mortgage backed Treasuries and securities known as qualitative easing in a bid to enhanced economic growth.

Bill O’Neill, partner of commodities investment firm LOGIC Advisors said that the payrolls report gives more credibility to the idea that they are not going to see any reduction in QE3. It’s just a knee-jerk response and he don’t think it necessarily indicates that the market has bottomed out here.

Heavy outflows from precious metal’s exchange traded funds and sharp losses of prominent gold bull John Paulson’s precious metal fund also weighed on investor sentiment.

Bullion accelerated additions throughout the session on the payrolls statistics and was climbed 1.7 percent at $1,579.60 per ounce (1854 GMT), having earlier strike a high at $1,580.80 per ounce.

Trading volume, however was relatively feeble given the sharp rally. Turnover was at about 200,000 lots, in line with its 30 day average.

Yellow metal’s response to the payrolls report was principally strong as previous advances in the labor market had fueled discussion within the US central bank regarding whether to cut back the third round of bond purchases, possibly as soon as this summer.

Gold futures closed more than $20 per ounce higher on Friday, paring their loss for the week because a disappointing US jobs report pressured the US dollar and contributed to a slip in the stock market.

Gold future for June delivery climbed $23.50 or 1.5%, to settle at $1,575.90 per ounce on the Comex division of the New York Mercantile Exchange.


Gold Float Near 10 month low, US payroll Statistics in focus

Yellow metal stable on Friday however held near its lowest since May previous year as investors waited for key US jobs data for more clues on the health of the world’s biggest economy, as a plunge in ETF holdings dragged on prices.

Investors will scrutinise on Friday’s US employment statistics for more signals on the strength of that economy. A strong report could damage precious metal safe haven appeal, making it easier for the US Federal Reserve to end stimulus measures that have made some investors worry regarding inflation in the world’s greatest economy.

Strong employment statistics could prompt the US Federal Reserve to end its gold friendly bond buying programme earlier than predictable and dent bullion’s safe haven appeal as worries concerning inflation.

Yellow metal was little changed at $1,553.56 per ounce by 0033 GMT, still heading for a second week of turn down. It knock down to 1,539.74 on Thursday, its weakest in 10 months, because unprecedented monetary stimulus from the Bank of Japan and expectation’s for another European Central Bank rate cut failed to stem heavy selling.

US gold future for June delivery was at $1,553.70 per ounce, up $1.30.

Brian Lan, managing director of GoldSilver Central Pte Ltd said if the statistics turns out to be strong tonight from the US,investors will look to the stock markets because it appears more attractive, Gold’s course will really depend on the data released tonight.

China being absent from the physical market this week for a Thursday and Friday holiday has added to the overall weakness in metals.

Metals consultancy GFMS said bullion is gearing up for the start of a bear market cycle in 2014 following more than a decade of gains as consumer demand for jewellery, bars and coins turn down and central bank buying plateaus.

Gold future for June delivery knock down $2 or 0.1%, to $1,550.40 per ounce during Asian morning trading hours.


Gold About 9 Month Weakest, Investors Leave Risky Assets

Precious gold slumped for a third straight session on Thursday, holding near a nine month low strike during the last session, following a steep decline in equities and disappointing US private sector job description prompted investors to cash in gold to cover losses.

Markets are now eyeing the key monthly US nonfarm payrolls statement on Friday that will possibly confirm outlook that the Federal Reserve will keep its extremely accommodative monetary policy.

US companies hired at the lowest pace in five months in March as recent strong demand for construction jobs fade, as growth in the huge services sector slowed, signs that the economic upturn could be hitting a soft patch.

Joyce Liu, an investment analyst at Phillip Futures in Singapore said that the environment for bullion is pretty bearish now. He think if yellow metal tests the lower trend channel it has the potential to fall to $1,530 level.

As for North Korea he think investors are considering the threats more like a joke. They are not reacting because if North Korea is really going to launch a nuclear loaded missile. Funds are moving out of precious metal as there’s less need for safe haven.

The US state on Wednesday it would soon send a missile defense system to Guam to defend it from North Korea, because the US military adjusts to what Defense Secretary Chuck Hagel has called a real and clear threat from Pyongyang.

Yellow metal lost $3.66 per ounce to $1,553.69 by 0041 GMT following declining to $1,549.69 on Wednesday its lowest level since June. Gold a traditional safe haven that climbed more than a percent previous month, also failed to respond to growing geopolitical tensions in the Korean peninsula. US gold future for June delivery was stable at $1,554.00 per ounce.

Doubts that central banks’ money printing to buy assets will stoke inflation have been a key driver in enhanceing yellow metal, which rallied to an 11 month high in october previous year following the Fed announced its third round of aggressive economic stimulus. Bullion price is in our observation, in bubble territory.

Gold future for June delivery knock down $22.40 per ounce or 1.4%, to settle at $1,553.50 per ounce on the Comex division of the New York Mercantile Exchange.


Cyprus Bank Particulars Heavy Losses for Major European bank Customers

Foremost depositors in Cyprus’s largest bank will lose about 60 percent of savings over 100,000 euros, sharpening the terms of a bailout that has surprised European banks however saved the island from bankruptcy.

preliminary signs that huge depositors in Bank of Cyprus would take a strike of 30 to 40 percent the first time the euro zone has made bank customers added to a bailout had previously unnerved investors in European lenders this week.

The strength of the conditions sends a clear signal that the bailout means the end of Cyprus as a center for offshore finance and could accelerate economic turn down on the island and bring steeper job losses.

Banks reopened to relative calm on Thursday following the imposition of the initial capital controls the euro has seen since it was launched a decade ago.

Tryfonas Neokleous, owner of a clothes shop on a cobbled street in the center of the city said that the Europe should not have allowed this disaster to happen here. Cyprus was heaven and they have turned it into hell.

He further said that he didn’t except business to pick up even now that the banks were open again following an approximately two-week shutdown.

He don’t anticipate anything and he don’t expect for anything anymore. People are going to spend their money on food and the whole thing else they have been depressed of the last 15 days.

There are no symbols for now that bank customers in other struggling euro zone countries like Italy, Greece or Spain taking fright at the precedent set by the bailout.

German Finance Minister Wolfgang Schaeuble informed German mass selling daily Bild that savings accounts in Europe are safe Cyprus is and will remain a special one off case.

European representatives have worked hard this week to stress that the island’s bailout was a exceptional case following a proposal by Euro  group chairman Jeroen Dijsselbloem that the rescue would serve as a model for potential crises rattled European financial markets.


New York Assembly Approved Budget On Time Third Year In A Row

New York’s Assembly approved the state’s $135 billion budget for fiscal year 2013-2014 on Thursday just earlier than midnight, the third budget in a row to be delivered on time in a state recognized for regularly being late.

Officials hurried to sign off on the legislation during a week that was interrupt with religious holidays and have succeeded in attaining the job done ahead of the start of the state’s fiscal year on April 1.

Getting the budget completed on time may not sound like much to be proud, however it is being touted as a achievement in a state where seasoned budget watchers remind over a decade of tardiness when budgets would sometimes run into late summer.

Andrew Cuomo, State Governor stated that although three on time budgets in a row should not sound like much and in New York state this is the very first time it has happened in approximately 30 years. Year following year the budgets became a flash point for the chaos and dysfunction of state government.

The Assembly’s 13 hour session broke up just earlier than midnight on Thursday and trait extended debate over a stack of failed adjustments. They included one that attempt to torpedo a tax incentive broadly seen as a way to attract.

A Republican adjustment’s to restore $90 million in funding for the developmentally disabled failed however there were impassioned pleas to revisit the concern on both sides.

The money was cut as Washington Congressional committee stated that New York state was over billing the federal government for Medicaid funds for centers that treat public with developmental disabilities. That led to the state cutting $1.1 billion from the budget proposal in February.

While a package the budget holds spending growth under 2 percent, lift the least wage incrementally to $9 an hour by the end of 2015, extend superior tax rates for millionaires and tax breaks for the middle class that were to expire during coming year.

It also boost state funding for schools by $1 billion and creates a tax rebate program that will deliver $350 checks to a million middle income peoples with children right prior to state elections in 2014.


Federal Reserve Doves In No Rush To Scale Back Asset Purchases

Primary supporters of the Fed’s bond buying program are not rushing to scale back the swiftness of purchases as the job market improves.

Charles Evans, the president of the Chicago Federal Reserve Bank and a leading architect of the Fed’s specially loose policy, advice a go-slow approach to making any alteration to the $85 billion per month purchases of mortgage and Treasury’s backed securities.

Charles Evans further said that he assumed this is the summit where we have to be patient and let our policies work.

He further said that he prefer and suppose it is best that we carry on to provide strong confidence that we are going to be doing appropriate accommodative policies to get the economy going another time.

Fed will have to have assured that the economy was on solid footing in the second half of the year prior to changing policy. That could simply mean that we require to work our way through the second half prior to we have sufficient confidence that growth is strong enough.

Some other Fed officials are excited for the Fed to diminish the asset purchases. A few believe the Fed should start narrowing as soon as possible.

The Fed is currently buying $40 billion of mortgage-backed securities and $45 billion in long-term Treasury’s per month. Following a two day conference previous week, Ben Bernanke, Fed Chairman said that the Fed wanted to be convinced that current improvement in the labor market was sustainable prior to imitating the purchases.

William Dudley, the president of the New York Fed said that he expected the fed would ultimately scale back the speed of the purchases.

Although Evans argued that the asset purchases were helping the economy. He can not perceive that those are the bound for doing less.  He want to be really careful regarding the signal that reducing bond buying would be.

Evans stated that he was open-minded and a couple of months of job growth above 300,000 would get his concentration and in February, 236,000 jobs were created.