Start Make Money Online Now ..

Start make money online now

Signup now ..

https://recyclix.com/?id=ec7d69e21f5a90

https://recyclix.com/?id=ec7d69e21f5a90

Gold falls sharply as strong U.S. jobs reports boosts case for June hike

Gold fell sharply, suffering one of its strongest one-day loss in a month, as anoptimistic U.S. March jobs report signaled strong improvements in the labor market, likely pushing a June interest rate hike by the Federal Reserve back on the table.

On the Comex division of the New York Mercantile Exchange, gold for June delivery traded in a broad range between $1,210.30 and $1,236.90 an ounce, before settling at $1,218.30, down 17.30 or 1.40% on the session. At session-lows, gold dropped to near six-week lows on Friday morning. Gold is coming off its strongest quarter in 30 years when it surged nearly 15%, as a China-led global economic rout sent investors scurrying into the safe haven asset.

Gold likely gained support at $1,063.20, the low from January 4 and was met with resistance at $1,280.70, the high from Mar. 11.

On Friday morning, the U.S. Department of Labor's Bureau of Labor Statistics (BLS) said non farm payrolls rose by 215,000 in March, slightly above consensus estimates of 210,000 and extending encouraging gains from February when the labor market added an upwardly revised 245,000 nonfarm positions. The gains were concentrated in Retail Trade, Construction and Health Care, which all exhibited considerable increases over the month. After adding 48,000 jobs in March, the Retail Trade sector has grown by more than 375,000 during the last year.

"The remarkable U.S. recovery continues, as total nonfarm employment increased by 215,000 in March. Beginning just a year after President Obama inherited the worst economic crisis in generations, businesses have been adding jobs at an extended, record-setting clip: a total of 14.4 million jobs over the last 73 consecutive months of private-sector job growth," U.S. labor secretary Thomas Perez said in a statement.

"There are so many reasons to be bullish about our economic future, but we can’t become complacent about the challenges that remain. Continued weakness in manufacturing, for example, is a reminder that we must keep working to restore balance to the economy, to ensure that the recovery benefits people in all communities, up and down the income spectrum."

Although the unemployment rate inched up by 0.1 to 5.0%, it still remains near eight-year lows from the previous two months. The U-6 unemployment rate, which factors in workers marginally attached to the labor force, as well as part-time workers, rose slightly to 9.8%. By comparison, the U-6 rate stood at 10.9% last March and reached as high as 18.0% at the height of the Great Recession. The reading is the Fed's preferred gauge for unemployment, as it judges the strength of the labor market.

Notably, average hourly earnings jumped by 0.3% one month after slumping by 0.1% in February. The labor force participation rate also increased by 0.1 to 63%, while the average work week held steady at 34.4 hours.

The CME Group's (NASDAQ:CME) Fed Watch tool increased the probability of a June interest rate hike to 25.7% on Friday from 19.0% on the previous day. Last month, there was a 77% chance the Fed would raise short-term rates at least once before July, according to the CME Group. Earlier this week, Fed chair Janet Yellen said the Federal Open Market Committee (FOMC) would remain cautious with future interest rate hikes in light of heightened global economic and financial risks. The FOMC has left its benchmark Federal Funds Rate at a targeted range between 0.25 and 0.50% in each of its first two meetings this year.

Any rate hikes this year are viewed as bearish for gold which struggles to compete with high yield bearing assets in rising rate environments.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained more than 0.10% to an intraday high of 95.10, before falling back to 94.59 in U.S. afternoon trading. The index remains near five-month lows.

Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.

Silver for May delivery plunged 0.534 or 3.45% to $14.930 an ounce.

Copper for May delivery fell 0.020 or 0.92% to 2.163 a pound.

Crude plunges 4%, as Saudis resist output freeze unless Iran joins deal

Crude futures plunged more than 4%, closing near session-lows, as energy traders reacted to reports that Saudi Arabia will only freeze production at a closely-watched meeting this month if Iran decides to cap output as well.

On the New York Mercantile Exchange, WTI crude for May delivery traded in a broad range between $36.73 and $38.48 a barrel, before settling at $36.79, down 1.55 or 4.04% on the session. At session lows, U.S. crude futures fell to its lowest level since mid-March, dropping below $37 a barrel for the first time since March 16. WTI crude is coming off its strongest month in nearly a year when it surged more than 13%, amid strong indications that Saudi Arabia, Russia and two other OPEC producers will freeze output at their respective January levels when the nations meet at an April 17 summit in Doha.

On the Intercontinental Exchange (ICE), brent crude for June delivery wavered between $38.56 and $40.43, before closing at $38.68, down 1.63 or 4.04% on the trading day. North Brent Sea futures slipped under $39 a barrel for the first time in more than two weeks.

Both the international and U.S. domestic benchmarks of crude are up considerably since touching down to fresh multi-year lows in early-February.

Crude futures fell sharply on Friday after Mohammed Bin Salman, Saudi's deputy crown prince stubbornly insisted that the kingdom will resist any agreement to cap its output unless the pact is also signed by their Iranian rivals. While Iran has agreed to attend the OPEC-Non OPEC later this month in Qatar, Iranian officials are hesitant to limit production until it returns to pre-sanction levels from 2007. A Bloomberg survey released on Thursday found that Iran pumped 3.2 million bpd in March, its highest level since May, 2012.

"If all countries agree to freeze production, we’re ready," Bin Salman said in an exclusive interview with Bloomberg. "If there is anyone that decides to raise their production, then we will not reject any opportunity that knocks on our door."

Despite the recent rally, crude futures are down more than 40% since November, 2014, when OPEC rattled global energy markets with a strategic decision to maintain its production ceiling above 30 million barrels per day. Last month, a Reuters survey found that OPEC increased production by 100,000 barrels per day in March to 32.47 million bpd. As markets worldwide remain awash in excessive supply, oil prices have fallen sharply below their peak of $115 a barrel from June, 2014.

Separately, oil services firm Baker Hughes said the U.S. oil rig count fell by 10 to 362 this week, falling to its lowest level since November, 2009. The combined oil and gas rig count dropped by 14 to 450, remaining near record lows hit last month. Considerable declines in the number of oil rigs nationwide typically provide lagging indications that production could be on the verge of slowing.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, gained more than 0.10% to an intraday high of 95.10, before falling back to 94.60 in U.S. afternoon trading. The index remains near five-month lows.

Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.

U.S. task force to look at massive California natural gas leak

WASHINGTON (Reuters) - A new U.S. government task force will look into the country's biggest ever accidental release of methane, which occurred over several months in Los Angeles, California, hoping to prevent future leaks of the potent greenhouse gas from storage wells, the Obama administration said on Friday.

The Interagency Task Force on Natural Gas Storage Safety to look at the leak at the Aliso Canyon leak will be chaired by officials from the Department of Energy and the Department of Transportation's pipeline safety office.

A months-long leak at the Aliso Canyon storage field made scores of people ill and forced more the temporary relocation of more than 6,600 households from the northern Los Angeles community of Porter Ranch.

Scientists said the global warming potential of the release, which began last October and was not plugged until February, was equal to the annual carbon emissions of nearly 600,000 cars.

"The fact that this leak happened in the first place, the length of time that it took to fix, and the disruption that it caused for so many people are very concerning," Lynn Orr, a Department of Energy undersecretary, and Marie Therese Dominguez, the administrator of the Pipeline and Hazardous Materials Safety Administration, said in a release.

Aliso Canyon, owned by Southern California Gas Co a division of Sempra Energy (NYSE:SRE), is the country's fourth largest gas storage field of its kind. The utility has minimized the extent of the greenhouse gas impact of the leak, citing early California state data, saying the release represented less than 1 percent of the state's entire annual greenhouse gas emissions.

The Energy Department will hold workshops with industry, state and local leaders to develop practices for operation of storage facilities and ensure well integrity and response plans. Findings of the task force will be made public later this year.

Venezuela to cut energy output if key dam falls to critical low

By Corina Pons

CARACAS (Reuters) - Venezuela will reduce power generation if the key Guri dam, which supplies around half of the blackout-hit country's electricity, falls below a minimum level that is fast approaching, an official said on Friday.

A severe drought, coupled with what critics say is a lack of investment and maintenance in energy infrastructure, has hit the South American nation which depends on hydropower for 60 percent of its electricity generation.

The massive Guri dam in Venezuela's central jungle is now at just 244 meters - its lowest level ever and just 4 meters from a critical point where water cannot feed its turbines.

"Without a doubt if the level reaches 240 meters we will have to apply certain operative measures, which authorities will announce in due time," Miguel Angel Romero, the head of generation at state-run energy firm Corpoelec, told Reuters in an interview.

Romero did not provide specifics but said potential measures would include rotating electricity rationing to minimize the impact on the population, hospitals and food makers while the El Niño-induced drought lasts.

Frequent blackouts, especially outside the capital Caracas, are already driving voter ire against President Nicolas Maduro and further complicating business in the crisis-hit OPEC country.

Venezuela's opposition says the leftist government is using the drought as an excuse for decades of corruption and mismanagement in the energy sector.

Romero, an engineer who said he spent the night in a monitoring room analyzing Guri's levels, said a nationwide blackout was not in the cards and called on Venezuelans to see rationing as crucial to avoiding "more complex" situations.

Current generation levels still cover Venezuela's energy requirements, which hover between 15,000-16,000 megawatts at peak demand, he said.

But despite multibillion-dollar investment in thermoelectric plants under the late President Hugo Chavez as of 2010, the units are operating at only 50 to 60 percent of their capacity to produce roughly 6,500 megawatts, according to Romero.

Romero said the government is working on increasing thermo generation to more than 7,000 megawatts in the coming weeks as lack of rain persists.

The El Niño weather phenomenon has led to drought in several Andean countries. Neighboring Colombia is mulling energy rationing amid the drought, its president said this week.