Commodity Blog

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Gold Drops to Lowest Since September Posted: 19 Oct 2012 06:42 PM PDT Gold dropped, reaching the lowest level since September 7, on worries that economic slowdown in China will damp demand for commodities. China’s government indicated that foreign investment decreased for 10th time in 11 months. Some economists point out that currently it does not matter what kind of news markets get from China as traders tend to perceive them negatively either way. Signs of slowdown scare investors, while signs of faster growth lead to speculations that the policy makers will not add stimulus and that detracts traders from riskier assets all the same. The European Union summit did not resolve the uncertainty surrounding the bailout for Spain. It is yet unclear if the indebted nations will ask for rescue from the EU. Speculators prefer to be sure about trading environment and the uncertainty drove them away from raw materials, leading to the drop of the Standard & Poor's GSCI Spot Index by 1.4 percent. Gold decline from $1,737.38 to $1,722.22 on COMEX. (...) Read the rest of Gold Drops to Lowest Since September (12 words) Posted on Commodity blog.

Natural Gas Rises to Highest Price This Year Posted: 19 Oct 2012 04:42 PM PDT Natural gas advanced as demand from power plants was strong. Demand grew 16 percent in Jul from a year ago, reaching the highest level this year. Analysts expect that consumption will rise 14 percent (on an annual basis) this quarter. Demand is also expected to be robust as forecasters predict that this winter will be colder than the previous one. At the same time, the US Energy Information Administration reported that inventories grew 51 billion cubic feet. That is below the five-year average increase of 71 billion for the week. It looks like supply is going to trail demand and that is also bullish for gas. November futures for delivery of natural gas went up $0.03 to $3.617 per million British thermal units on NYMEX, touching the highest price since December 1. The prices have been 21 percent this year so far. (...) Read the rest of Natural Gas Rises to Highest Price This Year (12 words) Posted on Commodity blog.

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