24 Sep 2013
Commodities sank on firmer dollar
FXstreet.com (Athens)- Both the oil and gold decline shaply, due mainly to a firmer dollar but also because higher crude output from Iraq and a possible thaw in U.S.-Iran relations boost the supply outlook.
Commodities on the down trend as post-FOMC “risk-on” party fades out
The euro is falling sharply after European Central Bank President Mario Draghi said yesterday, that the central bank is willing to flood the market with cheap loans and euro zone interest rates should remain at current or even lower levels for some time. What’s more the single currency is falling because the Germany’s IFO business confidence survey fell short of market expectations in September. As dollar gets lifted across the board, oil prices decline despite upbeat economic data from China and Europe. To elaborate on, Oil prices on both sides of the Atlantic lose more than $1 per barrel despite upbeat economic data from China and Europe, as Brent crude for November delivery fell $1.06 to settle at $108.16 per barrel, after reaching a session low of $107.76. Brent's premium over U.S. crude stood at $4.57, little changed from Monday’s close of $4.55.
Gold edges down today on renewed worries that the U.S. Federal Reserve will begin cutting its bond-buying purchases as early as next month. Spot gold is down 0.2 percent at $1,322.41 an ounce. Furthermore, U.S. gold futures for December delivery settled down on Monday $5.50 an ounce at $1,327, with trading volume at 20 percent below its 30-day average. Last but not least, silver is down 0.5 percent to $21.68 an ounce.
Commodities on the down trend as post-FOMC “risk-on” party fades out
The euro is falling sharply after European Central Bank President Mario Draghi said yesterday, that the central bank is willing to flood the market with cheap loans and euro zone interest rates should remain at current or even lower levels for some time. What’s more the single currency is falling because the Germany’s IFO business confidence survey fell short of market expectations in September. As dollar gets lifted across the board, oil prices decline despite upbeat economic data from China and Europe. To elaborate on, Oil prices on both sides of the Atlantic lose more than $1 per barrel despite upbeat economic data from China and Europe, as Brent crude for November delivery fell $1.06 to settle at $108.16 per barrel, after reaching a session low of $107.76. Brent's premium over U.S. crude stood at $4.57, little changed from Monday’s close of $4.55.
Gold edges down today on renewed worries that the U.S. Federal Reserve will begin cutting its bond-buying purchases as early as next month. Spot gold is down 0.2 percent at $1,322.41 an ounce. Furthermore, U.S. gold futures for December delivery settled down on Monday $5.50 an ounce at $1,327, with trading volume at 20 percent below its 30-day average. Last but not least, silver is down 0.5 percent to $21.68 an ounce.