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MCXARUN
9994500540
Wednesday, May 21, 2008
GENERAL MARKET CONDITIONS
The long term trend in crude oil is very bullish. I am scared by the pace of the rise of crude oil. Short positions have been converted into long positions in crude. One billionaire fund manager says that crude oil will cross $140 and investors try to take crude oil near it in nearly a day. Tomorrow a fund manager says that crude oil prices will rise to $200 say in June then investors will try to take crude oil to $200 a barrel. The situation in crude oil is similar to gold prices. Momentum is bullish technically but a correction can happen anytime. When will that correction happen? Anywhere between the next one month to six months. It is very difficult to predict a top in momentum markets.
The European central bank (ECB) may not cut interest rates in 2008 and there is a slight possibility that it may raise interest rates towards the close. Expectations that the Fed will raise interest rates in December has been fully factored in by the markets. Even if the Fed raises interest rates in December and the ECB also raises interest rates in the same time then interest rate differentials will remain the same. So the euro will continue to remain firm against the US dollar, but the pace of gains will be very slow. The US dollar has weakened against all the currencies as higher crude oil prices will delay the US economic recovery. In the short term the US dollar will gain against the major currencies if and only if either growth differentials narrow or interest rate differentials narrow. Till then the greenback will trade with a softer bias in the medium term.
Lehman brothers has said that it will cut 1300 jobs globally. Once again firing news has started to come up from the financial services sector including one from Morgan Stanley in the past fortnight. Whether these jobs shift to Indian knowledge processing (KPO’s) firms remains to be seen? If more firing continues by the financial services industry, one should expect US May payrolls to remain in the negative zone and renewed selling pressure on the US dollar.
SILVER -- JULY FUTURE
Silver can target $2125 in the short term as long as $1580 holds and momentum supports it.
MCXARUN
9994500540
Long term investors should wait for a correction in crude oil prices as the risk to return ratio is not that great.
The European central bank (ECB) may not cut interest rates in 2008 and there is a slight possibility that it may raise interest rates towards the close. Expectations that the Fed will raise interest rates in December has been fully factored in by the markets. Even if the Fed raises interest rates in December and the ECB also raises interest rates in the same time then interest rate differentials will remain the same. So the euro will continue to remain firm against the US dollar, but the pace of gains will be very slow. The US dollar has weakened against all the currencies as higher crude oil prices will delay the US economic recovery. In the short term the US dollar will gain against the major currencies if and only if either growth differentials narrow or interest rate differentials narrow. Till then the greenback will trade with a softer bias in the medium term.
Lehman brothers has said that it will cut 1300 jobs globally. Once again firing news has started to come up from the financial services sector including one from Morgan Stanley in the past fortnight. Whether these jobs shift to Indian knowledge processing (KPO’s) firms remains to be seen? If more firing continues by the financial services industry, one should expect US May payrolls to remain in the negative zone and renewed selling pressure on the US dollar.
SILVER -- JULY FUTURE
Silver can target $2125 in the short term as long as $1580 holds and momentum supports it.
MCXARUN
9994500540
Tuesday, May 20, 2008
energy intraday
Energy
20 May 2008 11:37:42
Major Headlines:
Oil stayed close to record highs as OPEC looked increasingly unlikely to raise production despite peak prices, and on expectations of higher demand from China. And also the oil price has managed to hold near $125/bbl despite concerns about economic weakness and expectation for a stronger U.S. dollar
Goldman Sachs, the most active investment bank in energy markets, has predicted crude will jump to $141 in the second half of the year.
Looking ahead, all eyes will remain on the dollar for short-term direction, a weekly U.S. energy inventory report due Wednesday and market players will track imports into China after last week's disaster. Also, participants will keep an eye on U.S. gasoline stocks ahead of the driving season, which kicks off late May, to see whether the credit crunch has had a severe impact on demand
Saudi Arabia's oil minister, Ali al-Nuaimi, said Friday the kingdom had increased oil production by 300,000 barrels per day from May 10 in response to orders from customers, mostly from the United States, and will pump 9.45 million barrels per day in June.
But Nuaimi reiterated OPEC's long-standing view that global oil supply was balanced with demand and that market fundamentals were sound. Saudi Arabia is the biggest producer in the 13-nation OPEC, which pumps 40 percent of the world's oil. Iran, another major producer, said on Saturday that any output hike by OPEC as requested by the United States would not affect prices.
MCX Crude Oil June (Daily Chart)
Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative
Market is expected to remain positive and the resistance is seen at 5378 levels. If market breaches 5378 may see prices to take further upside towards 5427 and 5460 however if it holds back below 5296 may see prices to fall further on today. Major support is seen at 5263 and 5214
Recommendations-MCX Crude Oil June: Buy at 5260 Target 5310 and 5370 Stop loss 5215
MCX Natural gas May (Daily Chart)
Technical Outlook:The daily stochastic have crossed over down which is a bearish indication. The stochastic indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.
Market is expected to remain positive and the resistance is seen at 477.70 levels. If market breaches477.70 may see prices to take further upside towards 481.90 and 484.60 however if it holds back below 470.80 may see prices to fall further on today. Major support is seen at 468.10and463.90
Recommendations-MCX Natural Gas June: Buy at 469 Target 474 and 480 Stop loss at 466
MCXARUN
9994500540
20 May 2008 11:37:42
Major Headlines:
Oil stayed close to record highs as OPEC looked increasingly unlikely to raise production despite peak prices, and on expectations of higher demand from China. And also the oil price has managed to hold near $125/bbl despite concerns about economic weakness and expectation for a stronger U.S. dollar
Goldman Sachs, the most active investment bank in energy markets, has predicted crude will jump to $141 in the second half of the year.
Looking ahead, all eyes will remain on the dollar for short-term direction, a weekly U.S. energy inventory report due Wednesday and market players will track imports into China after last week's disaster. Also, participants will keep an eye on U.S. gasoline stocks ahead of the driving season, which kicks off late May, to see whether the credit crunch has had a severe impact on demand
Saudi Arabia's oil minister, Ali al-Nuaimi, said Friday the kingdom had increased oil production by 300,000 barrels per day from May 10 in response to orders from customers, mostly from the United States, and will pump 9.45 million barrels per day in June.
But Nuaimi reiterated OPEC's long-standing view that global oil supply was balanced with demand and that market fundamentals were sound. Saudi Arabia is the biggest producer in the 13-nation OPEC, which pumps 40 percent of the world's oil. Iran, another major producer, said on Saturday that any output hike by OPEC as requested by the United States would not affect prices.
MCX Crude Oil June (Daily Chart)
Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative
Market is expected to remain positive and the resistance is seen at 5378 levels. If market breaches 5378 may see prices to take further upside towards 5427 and 5460 however if it holds back below 5296 may see prices to fall further on today. Major support is seen at 5263 and 5214
Recommendations-MCX Crude Oil June: Buy at 5260 Target 5310 and 5370 Stop loss 5215
MCX Natural gas May (Daily Chart)
Technical Outlook:The daily stochastic have crossed over down which is a bearish indication. The stochastic indicators are decreasing from overbought level, which is bearish and should support lower prices. The market's short-term trend is negative as the close remains below the 9-day EMA. The upside closing price reversal on the daily chart is somewhat positive.
Market is expected to remain positive and the resistance is seen at 477.70 levels. If market breaches477.70 may see prices to take further upside towards 481.90 and 484.60 however if it holds back below 470.80 may see prices to fall further on today. Major support is seen at 468.10and463.90
Recommendations-MCX Natural Gas June: Buy at 469 Target 474 and 480 Stop loss at 466
MCXARUN
9994500540
bullion intraday
Bullion
20 May 2008 11:44:01
Major Headlines:
Spot gold climbed as high as$914.40 an ounce in New York Monday morning, its highest intraday level since April 22. The dollar remains a currency facing substantial headwinds in the form of the huge annual trade, current and now increasing budget deficits and burgeoning stagflation
Gold extended gains to hit its highest level in nearly a month above $900 an ounce on the back of speculative buying as oil held near record high, raising fears of inflation.
Previous attempts to revisit the record high have been met by heavy profit taking, which saw gold fall to a four-month low at $845 an ounce in early May. Whether gold will hold above $900 is a difficult question. Around about $920 should be the psychological resistance for the metal,
Gold rose to the highest in three weeks as surging energy costs boosted demand for the precious metal as a hedge against inflation. Silver dropped. Crude-oil futures approached the record high from May 16 before erasing gains. The surge in oil spurred a 3.3 percent gain in the Reuters/Jefferies CRB Index of 19 commodities this month. Gold is still down 13 percent from $1,033.90 an ounce, the highest ever, on March 17, when oil reached a previous peak
Platinum supplies will fall short of consumption for a second year in 2008 as increased demand from automakers, the biggest user, outpaces mine output from South Africa, the largest producer
Last year's deficit was 480,000 ounces, the largest since 2002, as auto use gained 8.2 percent and global supply fell to the lowest in three years, The metal rose to a record $2,301.50 an ounce in March and may trade at $1,775 to $2,500 in six months with a ``substantial deficit'' for the year
It might be a surprise that platinum jewelry demand held up as well as it did, China, which accounts for 49 percent of platinum jewelry demand, used 2.6 percent more, and gains in the U.K. and Switzerland spurred a 7.7 percent increase in Europe and the Platinum has gained 42 percent this year, outpacing gold's 8.8 percent advance and silver's 16 percent increase.
Supplies of silver will exceed demand from jewelers and other manufacturers by 2,691 metric tons, the highest in more than 20 years, Including investor demand and reduced sales of hedged production by miners, the surplus will be 541 tons compared with a deficit of 1,345 tons last year
Sino Gold Mining Ltd., owner of China's second-largest gold mine, said operations at the Jinfeng mine weren't affected by last week's earthquake in neighboring Sichuan province that killed more than 30,000 people. Sino Gold started output from Jinfeng in southern Guizhou province last year and has forecast output of as much as 160,000 ounces this year.
U.S.Economy:
The Conference Board's index of leading indicators was up .1% in April, a little better than expected. Six of the ten indicators showed positive gains
U.S. food prices may jump 5.5 percent this year, more than a previous forecast of 5 percent, according to the U.S. Department of Agriculture. Fats and oils may increase 11.5 percent, egg prices may climb 11 percent, and baked products could rise 8.5 percent
Currencies update:
The ECB has refrained from following the U.S. Federal Reserve and Bank of England in lowering interest rates to shore up growth after a global increase in borrowing costs dimmed the outlook. The bank says Europe's economy is sound and inflation remains a bigger concern. While euro-region inflation slowed to 3.3 percent in April from a 16-year high of 3.6 percent in March, it's still above the ECB's 2 percent limit.
Construction output in the Euro area 15 was down 2.2% in March and down 1.4% from a year ago.
INR trading is closed yesterday due to bank Holiday
MCX Gold June (Daily Chart)
Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.
Market is expected to remain positive and the resistance is seen at 12196 levels. If market breaches 12196 may see prices to take further upside towards 12362 and 12569however if it holds back below 11823 may see prices to fall further on today. Major support is seen at 11616 and 11450
Recommendations–MCX Gold June: Buy at 12265 Target 12335 and 12410 Stoploss at 12220
MCX Silver July (Daily Chart)
Technical Outlook: The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.
Market is expected to remain positive and the resistance is seen at 23482 levels. If market breaches23482 may see prices to take further upside towards 23843 and 24167however if it holds back below 22797 may see prices to fall further on today. Major support is seen at 22473 and 22112
Recommendations-MCX Silver July: Buy at 23360 Target 23490 and 23650 Stop loss at 23240
MCXARUN
9994500540
20 May 2008 11:44:01
Major Headlines:
Spot gold climbed as high as$914.40 an ounce in New York Monday morning, its highest intraday level since April 22. The dollar remains a currency facing substantial headwinds in the form of the huge annual trade, current and now increasing budget deficits and burgeoning stagflation
Gold extended gains to hit its highest level in nearly a month above $900 an ounce on the back of speculative buying as oil held near record high, raising fears of inflation.
Previous attempts to revisit the record high have been met by heavy profit taking, which saw gold fall to a four-month low at $845 an ounce in early May. Whether gold will hold above $900 is a difficult question. Around about $920 should be the psychological resistance for the metal,
Gold rose to the highest in three weeks as surging energy costs boosted demand for the precious metal as a hedge against inflation. Silver dropped. Crude-oil futures approached the record high from May 16 before erasing gains. The surge in oil spurred a 3.3 percent gain in the Reuters/Jefferies CRB Index of 19 commodities this month. Gold is still down 13 percent from $1,033.90 an ounce, the highest ever, on March 17, when oil reached a previous peak
Platinum supplies will fall short of consumption for a second year in 2008 as increased demand from automakers, the biggest user, outpaces mine output from South Africa, the largest producer
Last year's deficit was 480,000 ounces, the largest since 2002, as auto use gained 8.2 percent and global supply fell to the lowest in three years, The metal rose to a record $2,301.50 an ounce in March and may trade at $1,775 to $2,500 in six months with a ``substantial deficit'' for the year
It might be a surprise that platinum jewelry demand held up as well as it did, China, which accounts for 49 percent of platinum jewelry demand, used 2.6 percent more, and gains in the U.K. and Switzerland spurred a 7.7 percent increase in Europe and the Platinum has gained 42 percent this year, outpacing gold's 8.8 percent advance and silver's 16 percent increase.
Supplies of silver will exceed demand from jewelers and other manufacturers by 2,691 metric tons, the highest in more than 20 years, Including investor demand and reduced sales of hedged production by miners, the surplus will be 541 tons compared with a deficit of 1,345 tons last year
Sino Gold Mining Ltd., owner of China's second-largest gold mine, said operations at the Jinfeng mine weren't affected by last week's earthquake in neighboring Sichuan province that killed more than 30,000 people. Sino Gold started output from Jinfeng in southern Guizhou province last year and has forecast output of as much as 160,000 ounces this year.
U.S.Economy:
The Conference Board's index of leading indicators was up .1% in April, a little better than expected. Six of the ten indicators showed positive gains
U.S. food prices may jump 5.5 percent this year, more than a previous forecast of 5 percent, according to the U.S. Department of Agriculture. Fats and oils may increase 11.5 percent, egg prices may climb 11 percent, and baked products could rise 8.5 percent
Currencies update:
The ECB has refrained from following the U.S. Federal Reserve and Bank of England in lowering interest rates to shore up growth after a global increase in borrowing costs dimmed the outlook. The bank says Europe's economy is sound and inflation remains a bigger concern. While euro-region inflation slowed to 3.3 percent in April from a 16-year high of 3.6 percent in March, it's still above the ECB's 2 percent limit.
Construction output in the Euro area 15 was down 2.2% in March and down 1.4% from a year ago.
INR trading is closed yesterday due to bank Holiday
MCX Gold June (Daily Chart)
Technical Outlook:The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.
Market is expected to remain positive and the resistance is seen at 12196 levels. If market breaches 12196 may see prices to take further upside towards 12362 and 12569however if it holds back below 11823 may see prices to fall further on today. Major support is seen at 11616 and 11450
Recommendations–MCX Gold June: Buy at 12265 Target 12335 and 12410 Stoploss at 12220
MCX Silver July (Daily Chart)
Technical Outlook: The daily stochastic have crossed over up which is a bullish indication. The stochastic indicators are rising from oversold level, which is bullish and should support higher prices. The market's short-term trend is positive as the close remains above the 9-day EMA. The downside closing price reversal on the daily chart is somewhat negative.
Market is expected to remain positive and the resistance is seen at 23482 levels. If market breaches23482 may see prices to take further upside towards 23843 and 24167however if it holds back below 22797 may see prices to fall further on today. Major support is seen at 22473 and 22112
Recommendations-MCX Silver July: Buy at 23360 Target 23490 and 23650 Stop loss at 23240
MCXARUN
9994500540
longview calls
GOLD
LIKELY TO TEST 12600-700-800 WITH ANY BREAK & CLOSE ABOVE 12475, ONLY CLOSE BELOW 11725 SOME DOWN SIDE AGAIN(JUNE)
NAT GAS
LIKELY TO TEST 512-15/520 WITH ANY BREAK & CLOSE ABOVE 499, ONLY CLOSE BELOW 431 DOWN RALLY AGAIN(JUNE)
NICKEL
LIKELY TO TEST 1075-60 WITH ANY BREAK & CLOSE BELOW 1100, WHILE CLOSE ABOVE 1150 SOME UPSIDE AGAIN(MAY)
MCXARUN
9994500540
LIKELY TO TEST 12600-700-800 WITH ANY BREAK & CLOSE ABOVE 12475, ONLY CLOSE BELOW 11725 SOME DOWN SIDE AGAIN(JUNE)
NAT GAS
LIKELY TO TEST 512-15/520 WITH ANY BREAK & CLOSE ABOVE 499, ONLY CLOSE BELOW 431 DOWN RALLY AGAIN(JUNE)
NICKEL
LIKELY TO TEST 1075-60 WITH ANY BREAK & CLOSE BELOW 1100, WHILE CLOSE ABOVE 1150 SOME UPSIDE AGAIN(MAY)
MCXARUN
9994500540
safe trade calls
GOLD
for the day buy abv 12425 & more abv 12475 S/L 12405 and T/p 12525-550 upto 12600 OR sell below 12240 S/L 12255 and T/p 12200 upto 12150 where good support seen again. close above 12475 test 12600/12800 in coming days (any time close above 12475/13100/ 13425 bullish while close below 11725/ 11460/11150/11000-10925 bearish for medium term)
SILVER
for the day buy abv 23725 S/L 23650 and T/p 23800-850/sustain abv test 24000-24100 atleast/towards 24250 OR buy ard 23175-80 S/L 23150 and T/p 23250-23350 (any time close below 22750-300/21575-500/ 20400/19250/ 18775 bearish rally while close above 23850/24500/26300/27700 bullish for medium term)
CRUDE
for the day buy only abv 5395-5400 S/L 5380 and T/p 5430-50 upto 5480 OR sell only below 5290 S/L 5310 and T/p 5260-65/ 5200 upto 5160, anytime close below 5120 bearish test 4980-5000 atleast/towards 4925 in coming days (now crude need to close above 5390 for bullish rally while close below 5120/ 5050/4740/4450 bearish for medium term)
COPPER
book profit on buy abv 346.5-347/351, for the day buy abv 355.5 S/L 354 and T/p 356.5/358/361-361.5/close above test 372-375 atleast in coming days OR buy ard 343-343.5 S/L 342.5 and T/p 345-47, as long support of 341 uptrend likely to continue (upside strong rally only on close above 361.5 while close below 340.5/336/330-326.5/310 bearish for medium term)
MCXARUN
9994500540
for the day buy abv 12425 & more abv 12475 S/L 12405 and T/p 12525-550 upto 12600 OR sell below 12240 S/L 12255 and T/p 12200 upto 12150 where good support seen again. close above 12475 test 12600/12800 in coming days (any time close above 12475/13100/ 13425 bullish while close below 11725/ 11460/11150/11000-10925 bearish for medium term)
SILVER
for the day buy abv 23725 S/L 23650 and T/p 23800-850/sustain abv test 24000-24100 atleast/towards 24250 OR buy ard 23175-80 S/L 23150 and T/p 23250-23350 (any time close below 22750-300/21575-500/ 20400/19250/ 18775 bearish rally while close above 23850/24500/26300/27700 bullish for medium term)
CRUDE
for the day buy only abv 5395-5400 S/L 5380 and T/p 5430-50 upto 5480 OR sell only below 5290 S/L 5310 and T/p 5260-65/ 5200 upto 5160, anytime close below 5120 bearish test 4980-5000 atleast/towards 4925 in coming days (now crude need to close above 5390 for bullish rally while close below 5120/ 5050/4740/4450 bearish for medium term)
COPPER
book profit on buy abv 346.5-347/351, for the day buy abv 355.5 S/L 354 and T/p 356.5/358/361-361.5/close above test 372-375 atleast in coming days OR buy ard 343-343.5 S/L 342.5 and T/p 345-47, as long support of 341 uptrend likely to continue (upside strong rally only on close above 361.5 while close below 340.5/336/330-326.5/310 bearish for medium term)
MCXARUN
9994500540
comex gold intraday
Gold Outlook
20 May 2008 10:34:07
Gold price closed higher yesterday, extending Friday’s gains, despite the dollar managing to strengthen moderately. The bullion’s appeal as an inflation hedge was boosted by high oil prices.
International spot gold traded in the range $900.55 - $913.35 and last quoted at $903.95 ($901.30).
The dollar found support in the index of leading economic indicators that showed a rise for the second straight month in April. The index rose 0.1% in April, identical to the gain in March after falling for the five prior months.
But on Friday, a more-than-expected fall in US consumer sentiments had renewed concerns about the economy. The University of Michigan’s Consumer Sentiment Index in May fell to 59.5 from 62.6 in April against the expectation for 61.0.
According to the data released by US Labor Department on Thursday, the number of people filing for the first time for unemployment benefits rose 6,000 to a seasonally adjusted 371,000 in the week ended May 10. But the four-week average of initial claims fell 1,000 to 365,750.
The continuing claims also recorded an increase, by 28,000 to 3.06 million in the week ended May 3; while the four-week average of continuing claims increased by 15,250 to 3.02 million.
The data from US Labor Department released on Wednesday showed that inflation had moderated in April, with the Consumer Price Index recording a rise of 0.2%.
Mean while, stronger-than-expected GDP data from the euro-zone provided support for the Euro. The European Union's statistical agency Eurostat reported that gross domestic product across the 15-nation euro-zone expanded at a 0.7% quarterly pace in the first three months of the year, gaining 2.2% year-on-year.
Federal Reserve Chairman Ben Bernanke in a speech last week had said that the US central bank's efforts to provide liquidity to financial markets in an effort to alleviate the credit crunch had helped but that markets remain stressed.
As per data released on last Tuesday, US retail sales fell by a seasonally adjusted 0.2% in April, following a 0.2% gain in the previous month. But it was slightly stronger compared to the expectation for a 0.3% drop.
But renewed credit market concerns still weigh on the greenback. American International Group, the world's biggest insurer had posted its largest ever quarterly loss. The result dimmed the optimism about the recovery in the economy despite data showing the U.S. trade deficit narrowed in March.
Crude oil June in NYMEX traded as high as $127.77 a barrel and settled at $127.30, $1.01 higher.
Oil prices thrived on potential supply threats due to geo-political tensions, expected demand from China and OPEC’s unwillingness to increase output despite high oil prices.
Last day DGCX Gold June traded in the range $901.50 – $914.50 and closed at $906.50 ($903.30).
TECHNICAL OUTLOOK (Intra-day)
GOLD (June) - Bullish above $ 910.00; bearish below $ 904.50
MCXARUN
9994500540
20 May 2008 10:34:07
Gold price closed higher yesterday, extending Friday’s gains, despite the dollar managing to strengthen moderately. The bullion’s appeal as an inflation hedge was boosted by high oil prices.
International spot gold traded in the range $900.55 - $913.35 and last quoted at $903.95 ($901.30).
The dollar found support in the index of leading economic indicators that showed a rise for the second straight month in April. The index rose 0.1% in April, identical to the gain in March after falling for the five prior months.
But on Friday, a more-than-expected fall in US consumer sentiments had renewed concerns about the economy. The University of Michigan’s Consumer Sentiment Index in May fell to 59.5 from 62.6 in April against the expectation for 61.0.
According to the data released by US Labor Department on Thursday, the number of people filing for the first time for unemployment benefits rose 6,000 to a seasonally adjusted 371,000 in the week ended May 10. But the four-week average of initial claims fell 1,000 to 365,750.
The continuing claims also recorded an increase, by 28,000 to 3.06 million in the week ended May 3; while the four-week average of continuing claims increased by 15,250 to 3.02 million.
The data from US Labor Department released on Wednesday showed that inflation had moderated in April, with the Consumer Price Index recording a rise of 0.2%.
Mean while, stronger-than-expected GDP data from the euro-zone provided support for the Euro. The European Union's statistical agency Eurostat reported that gross domestic product across the 15-nation euro-zone expanded at a 0.7% quarterly pace in the first three months of the year, gaining 2.2% year-on-year.
Federal Reserve Chairman Ben Bernanke in a speech last week had said that the US central bank's efforts to provide liquidity to financial markets in an effort to alleviate the credit crunch had helped but that markets remain stressed.
As per data released on last Tuesday, US retail sales fell by a seasonally adjusted 0.2% in April, following a 0.2% gain in the previous month. But it was slightly stronger compared to the expectation for a 0.3% drop.
But renewed credit market concerns still weigh on the greenback. American International Group, the world's biggest insurer had posted its largest ever quarterly loss. The result dimmed the optimism about the recovery in the economy despite data showing the U.S. trade deficit narrowed in March.
Crude oil June in NYMEX traded as high as $127.77 a barrel and settled at $127.30, $1.01 higher.
Oil prices thrived on potential supply threats due to geo-political tensions, expected demand from China and OPEC’s unwillingness to increase output despite high oil prices.
Last day DGCX Gold June traded in the range $901.50 – $914.50 and closed at $906.50 ($903.30).
TECHNICAL OUTLOOK (Intra-day)
GOLD (June) - Bullish above $ 910.00; bearish below $ 904.50
MCXARUN
9994500540
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