Gold and Silver Prices Advance while USD Declines vs JPY and EUR – Crude Oil Futures Higher

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(Best Syndication News) Silver, gold, and crude oil futures advanced while the dollar declined broadly after the news conference held by the Federal Reserve (see forex and futures charts below). The prospect of continued low interest rates triggered a rally on Wall Street and an advance in commodity-currencies.

World Economic News

By far, the biggest economic news of the day was the Federal Open Market Committee (FOMC) statement. Federal Reserve Chairman of the Board Ben Bernanke told reporters that the central bank will keep their federal funds target rate at historic low levels through most of 2014.

The move by the Fed should hold interest rates low. Some analysts see the decision to announce their long-term policy strategy as a mistake. Low interest rates can benefit commodities, stocks and homebuyers; however current home-owners and the banking industry could suffer.

The Federal Reserve says the decision is part of their mandate to promote “maximum employment.” They also believe that announcing their policy strategy should keep prices (inflation) in check.

On Thursday, the Reserve Bank of New Zealand kept their Official Cash Rate (OCR) unchanged at 2.5 percent. The central bank cited continued uncertainty in Europe and a “fragile” world economy for their decision.

Precious Metals

Gold prices began to rise during the Federal Reserve press conference. February gold on the COMEX jumped $35.60 (+2.14%) to $1,700.10 a troy ounce (see survey #2 chart below).

March silver climbed $1.15 (+3.58%) to $33.12 a troy ounce. The ratio between the two metals was 51.3.

Platinum, palladium and copper prices were all higher.

Commodities advanced on the Tokyo Commodity Exchange (TOCOM). Silver was rising quicker than gold. December 2012 gold on the TOCOM added 87 yen (+2.09%) to ¥4,255 a gram. See the TOCOM chart below for our exclusive dollar conversions.

Energy Prices

Light sweet crude oil (WTI) on the New York Mercantile Exchange (NYMEX) climbed 45 cents (+0.45%) to $99.40 per barrel.

Brent crude oil on the Intercontinental Exchange (ICE) declined early, down 55 cents (-0.50%) to $110.03 a barrel. The difference between Brent and WTI tightened to $10.63.

Coal, gasoline, and natural gas were higher. Heating oil prices fell.

Currency Exchange Rates

The Australian dollar (AUD) and the Canadian dollar (CAD) were the big winners Wednesday (see the cross tables below). The US dollar (USD) and Hong Kong dollar (HKD) were the losers.

The USD declined broadly (see average chart below). The USD fell 0.59 percent vs the euro (EUR), 0.48 percent vs the Japanese yen (JPY), 0.51 percent vs the British pound sterling (GBP), and 0.79 percent vs the Swiss franc (CHF).

Later in the day the greenback turned around vs the CAD (see intraday chart below). The USD/JPY hit 77.56, the EUR/USD hit 1.3106, the GBP/USD hit 1.5662, the CAD/USD hit 1.0015, the USD/HKD hit 7.7592, and the AUD/USD hit 1.064.

By: Tom Madison
Business Reporter

TOCOM chart with our exclusive dollar conversions:

1/25/2012 Tokyo Commodities Exchange One-Day One-Day Five-Day 30-Day 100-Day
Yen * Commodity Dollars ¥ Change % Change % Change % Change % Change
4,255 Gold (standard) $1,702.66 87 2.09% 3.81% 1.97% -5.34%
82 Silver $32.81 3 3.27% 9.33% 5.81% -19.45%
3,941 Platinum (standard) $1,577.01 61 1.57% 4.67% 4.56% -14.77%
1,729 Palladium $691.87 29 1.71% 5.30% 5.23% -11.42%
66,590 Gasoline $3.24 300 0.45% 1.94% 5.61% 5.20%
52,450 Crude oil $107.29 190 0.36% 1.33% 3.53% -0.17%
316.8 Rubber $1.85 1 0.41% 7.03% 14.91% -15.36%
51.89 Ratio Gold/Silver -1 -1.15% -5.06% -3.63% 17.52%
* ¥ / gram kiloliter and kilogram PST - conversions to $ / ounce barrel or gallon

Survey #2 Settle Price Chart:

Wednesday Survey # 2 (BSNCOM2) One-Day One-Day 1 Week 30-Day 100-Day
1/25/2012 Energy and Metal Settle $ Change % Change % Change % Change % Change
2227.50 Aluminum 3-mo LME -1.50 -0.07% 0.79% 9.73% -8.75%
110.03 Brent crude (not settled) -0.55 -0.50% -1.34% 2.58% -4.20%
61.75 Coal 0.82 1.35% 0.13% -9.81% -19.89%
3.83 Copper HG 0.02 0.58% 2.05% 10.55% -8.92%
99.40 Crude oil (WTI) 0.45 0.45% -1.18% 1.67% 11.92%
2.18 Ethanol ZE CBOT 0.01 0.37% 3.36% 3.26% -25.06%
1700.10 Gold GC 35.60 2.14% 2.42% 1.91% -7.18%
3.02 Heating Oil (HO) 0.00 -0.17% 0.19% 4.25% -2.10%
2.73 Natural gas NG HH 0.18 6.85% 10.40% -16.13% -32.68%
692.80 Palladium PA 12.80 1.88% 3.72% 4.81% -12.09%
1577.40 Platinum PL 27.20 1.75% 3.55% 6.09% -15.02%
2.83 RB RBOB Gasoline 0.03 1.03% 0.30% 10.54% -1.48%
33.12 Silver SI 1.15 3.58% 8.44% 6.84% -20.57%
730.00 Steel Hot-Roll Coil -3.00 -0.41% -0.41% 8.15% 5.04%
52.25 UxC Uranium U3O8 -0.25 -0.48% -0.48% -0.95% 6.31%
1/25/2012 Averages and Ratios Change One-Day 1 Week 30-Day 100-Day
362.2 Average All 5.32 1.49% 2.35% 4.29% -8.78%
676.6 Metals Average 12.75 1.92% 3.09% 4.00% -11.19%
40.3 Energy Average 0.13 0.33% -0.80% -0.84% -3.99%
51.3 Ratio Gold/Silver Prices -0.73 -1.40% -5.55% -4.61% 16.85%
-122.7 Difference Plat-Gold -8.40 7.35% -10.18% -32.32% -600.82%
1.08 Ratio Plat/Gold 0.00 0.38% -1.09% -3.93% 9.22%
1.1 Ratio Brent / WTI Prices -0.01 -0.95% -0.16% 0.90% -14.40%
$10.63 Difference Brent - CL -1.00 -8.60% -2.83% 12.01% -59.18%

Average Dollar Rates:

Wednesday Average Surveys 1 - 3 % Change Day % Change Wk % Ch 30-Day Ch 100-Day
1/25/2012 Average 1US$ = Currency Pos=$US Gain Pos=$US Gain Pos=$US Gain Pos=$US Gain
0.9398 Average Against Aussie -1.01% -2.10% -5.98% -0.43%
0.7626 Average Against Euro € -0.59% -1.15% -0.66% 8.04%
77.5905 Average Against Yen ¥ -0.48% 0.70% -0.57% 1.01%
0.6374 Average Against Pound £ -0.51% -1.25% -1.33% 3.12%
0.9209 Average Against Franc -0.79% -1.23% -2.61% 16.81%
1.0014 Average Against Canadian -0.93% -1.09% -3.19% 1.53%
Average 1Currency = US$ Pos=$US Loss Pos=$US Loss Pos=$US Loss Pos=$US Loss
1.0640 Average Against Aussie 1.02% 2.15% 6.36% 0.43%
1.3113 Average Against Euro 0.60% 1.16% 0.66% -7.44%
0.0129 Average Against Yen 0.48% -0.70% 0.58% -1.00%
1.5689 Average Against Pound 0.51% 1.26% 1.35% -3.03%
1.0858 Average Against Franc 0.80% 1.25% 2.68% -14.39%
0.9986 Average Against Canadian 0.94% 1.10% 3.30% -1.51%

Intraday Chart:

Green = $ UP Intra-Day Trend Green = $ UP
Red = $ Down 1/25/2012 Survey 5A Survey 5B Survey 5C Red = $ Down
From Previous Time PT 12:00 AM 6:00PM 12:00 AM Intra-Day Average
-0.14% USD/JPY 77.8 77.76 77.56 -0.31% 77.707
0.40% EUR/USD 1.3084 1.3106 1.3106 0.17% 1.310
0.24% GBP/USD 1.5645 1.5657 1.5662 0.11% 1.565
-0.54% CAD/USD 1.0051 1.0035 1.0015 -0.36% 1.003
-0.01% USD/HKD 7.7596 7.7597 7.7592 -0.01% 7.760
0.59% AUD/USD 1.059 1.0602 1.064 0.47% 1.061
0.00% USD/CNY 6.333 6.333 6.333 0.00% 6.333

Cross Tables:

Survey 1 January 25 2012 6:00 PM
1 HKD 1 AUD 1 CAD 1 CHF 1 GBP 1 JPY 1 EUR 1 USD
USD $ 0.1289 1.0639 0.9985 1.0859 1.5692 0.0129 1.3115 -
EUR € 0.0983 0.8113 0.7614 0.828 1.1965 0.0098 - 0.7625
JPY ¥ 10.0058 82.6003 77.5215 84.3037 121.824 - 101.818 77.637
GBP £ 0.0821 0.678 0.6363 0.692 - 0.0082 0.8358 0.6373
CHF franc 0.1187 0.9798 0.9195 - 1.4451 0.0119 1.2077 0.9209
CAD 0.1291 1.0655 - 1.0875 1.5715 0.0129 1.3134 1.0015
AUD 0.1211 - 0.9385 1.0206 1.4749 0.0121 1.2327 0.9399
HKD 8.2553 7.7477 8.4255 12.1754 0.0999 10.1759 7.7592

One-Day Change:

Pos Means Top Currency Gained One Day Change January 25 2012 6:00 PM
Survey 1 1 HKD 1 AUD 1 CAD 1 CHF 1 GBP 1 JPY 1 EUR 1 USD
USD 0.000% 0.997% 0.899% 0.798% 0.519% 0.781% 0.614%
EUR € -0.607% 0.396% 0.290% 0.181% -0.092% 0.000% -0.613%
JPY ¥ -0.327% 0.654% 0.554% 0.450% 0.176% 0.268% -0.341%
GBP £ -0.485% 0.474% 0.379% 0.275% 0.000% 0.096% -0.515%
CHF -0.753% 0.205% 0.098% -0.269% 0.000% -0.182% -0.786%
CAD -0.845% 0.094% -0.101% -0.374% -0.769% -0.288% -0.891%
AUD $ -0.981% -0.096% -0.205% -0.472% -0.820% -0.380% -0.990%
HKD 0.985% 0.884% 0.779% 0.504% 0.301% 0.596% -0.015%

30-Day Change:

Pos Means Top Currency Gained 30- Day Change January 25 2012 6:00 PM
Survey 1 1 HKD 1 AUD 1 CAD 1 CHF 1 GBP 1 JPY 1 EUR 1 USD
USD 0.31% 5.14% 2.42% 1.57% 0.62% 0.00% -0.76%
EUR 1.03% 5.96% 3.21% 2.35% 1.39% 1.03% 0.77%
JPY 0.04% 4.91% 2.20% 1.35% 0.40% -0.98% -0.22%
GBP -0.36% 4.48% 1.79% 0.95% 0.00% -1.37% -0.61%
CHF -1.25% 3.52% 0.83% -0.93% -0.83% -2.30% -1.55%
CAD -2.05% 2.66% -0.83% -1.76% -2.27% -3.11% -2.36%
AUD -4.65% -2.59% -3.40% -4.30% -4.72% -5.61% -4.89%
HKD 4.87% 2.15% 1.30% 0.36% -0.10% -1.02% -0.26%

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