Oil And Gold Analysis: WTI Falls, Goldman Closes Bearish Recommendation

West Texas Intermediate crude fell, trimming the biggest weekly increase since June, as U.S. economy grew less than expected in the first quarter. Futures dropped 0.7 percent after the Commerce Department said gross domestic product rose at a 2.5 percent annual rate. Economists surveyed by Bloomberg expected a gain of 3 percent. Oil jumped 5 percent in the past two days on lower-than-expected U.S. jobless claims and a decrease in gasoline stockpiles. The GDP number is quite a bit lower than expected,” said Kyle Cooper, director of commodities research at IAF Advisors in Houston. “It’s pretty disappointing. Economic growth is just not very exciting and it’s not conducive to oil demand.” WTI for June delivery retreated below $93 per barrel.

GOLD
Hedge funds accumulated their second-biggest bet against gold on record, just as prices rallied the most in 15 months on surging demand for coins and jewelry. Goldman Sachs Group Inc. ended a recommendation to sell. Funds and other large speculators held 69,726 so-called short contracts on April 23, within 0.6 percent of the all-time high reached six weeks earlier. The net-long position dropped 25 percent to 46,168 futures and options. Net-bullish wagers across 18 U.S. traded raw materials slid 5 percent, the third decline in four weeks, with cuts in silver, corn and gasoline. Bullion rallied 11 percent since reaching a two-year low on April 16. The U.S. Mint ran out of its smallest gold coin last week, with sales across its products poised for the best month since December 2009. The U.K. Mint said purchases tripled. Premiums paid by jewelers in India, the biggest importer, to secure supply surged as much as fivefold in 10 days. Goldman reported that on April 23 it closed a bearish recommendation, saying further declines are likely.