Commodity Blog |
| Europe’s Woes & Asia’s Slower Growth Weaken Oil Prices Posted: 08 Oct 2012 04:14 PM PDT Crude oil declined today on concerns about economic growth in Europe and Asia. The World Bank predicted that Asian economies will expand with the slowest pace since 2001. Growth in East Asia (which excludes Japan and India, but includes China) will probably be at 7.2 percent in 2012, compared to 8.3 percent in the previous year. China and the United States are the biggest consumers of crude, making up 32 percent of world consumption. The situation in Europe is also weighing on oil prices. European Union leader will meet later this week to discuss their problems. Traders are unsure about the outcome of these meetings and such uncertainty makes them reluctant to buy riskier assets. November futures for crude oil fell as much as $1.17 to $88.71 per barrel on NYMEX today. Brent crude was down $0.2 (0.18 percent) to $111.82 as of 23:08 GMT on ICE. |
| Second Day of Losses for Precious Metals as Dollar Strengthens Posted: 08 Oct 2012 01:03 PM PDT Gold and other precious metals dropped today as the dollar strengthened. That was the second session of losses. Gold is not far from this year’s high though, so bulls have no reason to worry at the present. The US currency advanced among uncertainty about Europe. Traders are not sure whether Spain will request a bailout. The future of Greece is not certain either. Previously, such worries might have helped precious metals, but nowadays investors prefer currencies like the dollar and the yen in the role of save haven. Gold fell $3.30 (0.19 percent) to $1,777.50 per troy ounce as of 20:00 GMT on COMEX today. Silver was down as much as $0.49 (1.41 percent) to $34.09 per ounce today. |
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