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| Crude Rallies as News Drive Investors to Buy Commodities Posted: 01 Oct 2012 12:48 PM PDT Crude oil rallied today, following two sessions of decline, as the market sentiment was positive for raw materials. The news from the United States and Europe was good, increasing investors’ willingness to buy riskier assets. US manufacturing showed signs of improvement as the ISM PMI rose to 51.5 percent in September from August’s 49.6 percent. A value above 50.0 percent indicates expansion. Market analysts believed that the index would stay little changed. Europe, for a change, was also a provider of good news today. The stress test of Spain’s banks showed that the capital deficit is not as big as was estimated earlier. The news was Crude oil (light sweet) rose from $91.37 to $92.23 per barrel as of 19:42 GMT on NYMEX today. The daily maximum of $93.29 was the highest since September 21. |
| Will Fed Ease Policy Again? Gold Bulls Hope So Posted: 01 Oct 2012 09:37 AM PDT Gold rallied today, touching the highest level since February, on speculations that the monetary easing in the United States may lead to excessive inflation. Other precious metals followed gold in gains. Federal Reserve Bank of Chicago President Charles Evans said that the US central bank is able to bolster the economy further. Evans explained that he does not expect inflation to fall below 7 percent until 2014, giving additional incentive for the central bank to stimulate growth. Yet stimulating measures may lead to surge of inflation that would be negative for economic growth. The outlook for the US employment data, which will be released later this week, is not very optimistic, supporting speculations about additional stimulus from the Federal Reserve. Employment growth is expected to be at 111,000. That is just slightly above the previous figure, which was considered disappointing. Furthermore, the unemployment rate may rise by 0.1 percentage point to 8.2 percent. Gold climbed from $1,764.48 to $1,777.40 per ounce as of 16:31 GMT on COMEX today, while its daily high of $1,791.52 was the highest since February 29. Silver advanced from $34.14 to $34.70 per ounce, touching $35.33 intraday — the highest since March 2. Platinum was also higher, rising from $1,646.25 to $1,675.50 per ounce. |
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