A near century old London gold fixing will be replaced by an electronic gold fixing system today. Six banks will be able to set gold prices twice a day. The new procedure should make the global gold market more transparent. The gold market will become a partially regulated market, reducing the possibility for price manipulation. Chinese companies may be added in future.

Oil is trading lower today and is set for a weekly loss after a statement of Kuwait's oil minister saying that the OPEC, whose members account for 40% of worldwide production, have no choice but to maintain output levels I order to fight for market share. The possibility of a deal with Iran and an easing of sanctions further weighed on prices. Earlier this week data showed that oil supplies in the U.S. rose to the highest level on record last week putting pressure on oil prices. U.S. crude oil inventories rose by 9.6 million barrels. Brent Crude lost -1.01%, currently trading at USD53.88 a barrel. On January 13th Crude set a low at USD45.19. West Texas Intermediate lost -1.11% currently quoted at USD43.47.

Oil prices declined sharply in recent months as worldwide supply exceeds demand in a period of low global economic growth, pushing stockpiles to record highs and weighing on prices.

Gold is trading higher for a third day - the somehow dovish FED statement still lends some support to the precious metal and helped prices to rebound from the recent slump. The bank kept its monetary policy unchanged but dropped the word "patient" from its outlook for monetary policy. That means that the Fed could start to raise its interest rate soon but stated that it will closely watch economic data and international developments. Gold erased 2015 gains before adding the most gains in six weeks on Wednesday.

As a strong U.S. dollar and the prospect for higher U.S. rates weigh on the precious metal - as gold is dollar-denominated and not yield-bearing.

Gold is currently quoted at USD1,171.70, +0,03% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. On Tuesday gold traded as low as USD1,142.50, a three-month low.

BLOOMBERG

More Iran Oil May Flow Within Months of Deal, Officials Say

(Bloomberg) -- World powers have offered to suspend U.S. and European restrictions on Iranian oil exports, but only if the Islamic Republic accepts strict limits on its nuclear program for at least a decade, according to American and European officials.

The offer to begin lifting some sanctions within months of a deal comes amid the effort in Lausanne, Switzerland to reach the framework of an agreement by the end of the month, with the outcome still in doubt.

Iran has yet to agree to such conditions in exchange for relief from oil and banking sanctions. Even if the Islamic Republic does, the limits on its oil exports would be suspended only after it complied with an initial set of restrictions, such as disconnecting the majority of the centrifuges it uses to enrich uranium and submitting them for verification, said the officials, who spoke to Bloomberg News on condition of anonymity to describe the private negotiations.

Source: http://www.bloomberg.com/news/articles/2015-03-19/more-iran-oil-could-flow-within-months-of-deal-officials-say

REUTERS
Greek PM assures EU creditors reforms coming to unlock cash

(Reuters) - Greek Prime Minister Alexis Tsipras assured European Union creditors at late-night crisis talks in Brussels that his leftist-led coalition would present soon a full set of economic reforms in order to unlock cash to stave off bankruptcy.

After two months of mounting frustration on both sides since Tsipras was elected with a mandate to end years of austerity imposed by creditors' conditions, the three-hour meeting on the sidelines of an EU summit was requested by Tsipras to break an impasse that risks seeing Athens stumble out of the euro zone.

But while a joint statement by the EU institutions spoke of a "spirit of mutual trust" and Tsipras said he left feeling more optimistic, German Chancellor Angela Merkel stressed no money would be released before Athens implements budget measures and other reforms that it has so far been reluctant to consent to.

Source: http://www.reuters.com/article/2015/03/20/us-eurozone-greece-idUSKBN0MF0WY20150320

BLOOMBERG

Yuan Nearing PBOC Rate Spurs Band Speculation: Chart

(Bloomberg) -- The yuan is converging with the central bank's reference rate at a record pace, a sign to ING Groep NV that China may be planning to widen the currency's daily trading band.

The CHART OF THE DAY shows the gap has narrowed to 0.6 percent in Shanghai, having been on the cusp of its 2 percent limit at the start of the month. The People's Bank of China doubled the yuan's trading range a year ago after the difference narrowed to less than 0.3 percent from a January 2014 average of 0.9 percent. Intervention may be a factor behind the latest convergence, according to Standard Chartered Plc and Overseas-Chinese Banking Corp Ltd.

"It's like a parallel with a year ago as they are in a concerted effort to push the spot away from the band's limit," Tim Condon, head of Asia research at ING in Singapore, said by phone. "A wider band is in line with the thinking that China wants more market forces in determining the exchange rate."

Source: http://www.bloomberg.com/news/articles/2015-03-20/yuan-nearing-pboc-rate-spurs-band-speculation-chart-of-the-day

(raw materials / closing price /% change)

Oil 43.96 -1.57%

Gold 1,170.40 +0.12%