By FXEmpire.com
Tuesday Morning Market View – A little of this and a little of that
Gold dropped for a third day on concern that the European debt crisis will further weaken the euro against the dollar, trimming demand for assets priced in the U.S. currency. Silver, platinum and palladium retreated. Spot gold lost 0.2 percent to $1,648.73 an ounce during the Asian session, 1.4 percent over the past two days as the euro slumped to a two-month low against the dollar.
Gold was little changed at $1,649.90 an ounce on the Comex in New York after falling for two days. Spot gold of 99.99 percent purity gained 0.2 percent to 336.15 yuan a gram ($1,656.78 an ounce) on the Shanghai Gold Exchange, paring an earlier advance of 0.8 percent.
The dollar was little changed against a six-currency basket including the euro before a report that may show confidence among investors in Germany, Europe’s biggest economy, fell this month after climbing to a 21-month high in March
Copper fell for a third day after data from the U.S. and China deepened concerns that slowing economic growth may reduce demand for the metal among the world’s biggest users. The metal for delivery in three months declined as much as 0.6 percent to $7,939.50 a metric ton on the London Metal Exchange, before trading at $7,953.50. Copper on the Comex lost 0.7 percent to $3.6095 a pound.
Confidence among U.S. homebuilders declined in April to a three-month low and manufacturing in the New York region expanded in April at the slowest pace in five months.
Yields on Spain’s 10-year notes surged as much as 18 basis points, or 0.18 percentage point, to 6.16 percent yesterday. That’s the highest level since Dec. 1 and is approaching the 7 percent level that pushed Greece, Ireland and Portugal into rescues.
The global economy looks fragile, with Europe being buried by debt.” In China, FDI dropped for a fifth month in March on a slowing economy and limited prospects for gains in the yuan.
Oil was slightly lower Monday as tensions eased over Iran’s nuclear program. Benchmark U.S. crude fell 4 cents to $102.79 per barrel in New York. But Brent crude, which is used to benchmark the price of oil produced outside of the U.S., lost $2.72 to $118.49 per barrel in London.
Middle East tensions were the primary reason Brent rose 13 percent this year through Friday. Iran discussed its nuclear ambitions with the U.S. and several other countries at a weekend meeting in Istanbul.
The meeting didn’t produce any concrete agreements, but analysts said the potential of fighting in the Persian Gulf goes down as long there are negotiations. Both sides agreed to meet again on May 23. Iran, which threatened earlier this year to defend its nuclear program by closing off crucial oil shipping routes, now says that it can resolve Western concerns “quickly and easily.” Foreign Minister Ali Akbar Salehi, who was quoted by the semiofficial ISNA news agency, also said it was time to end sanctions on the Islamic Republic. Western nations have worked to halt Iran’s oil trade this year in hopes of forcing the country to the negotiating table. The actions have curtailed oil sales that Iran relies on to fund its government.
Originally posted here