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Commodities on the Defensive During Wednesday’s Trading

July 22, 2015 at 12:01 by Vladimir Vyun

Commodities declined during the European trading session today, demonstrating substantial losses. Basically all raw materials were on the defensive today, be it metals, energy products or agricultural commodities.

There can be couple of reasons for the underwhelming performance of the commodity market. Ample supply of crude oil and copper can explain the drop of those commodities. Lack of demand for safety (and better safe haven alternatives anyway) contributed to the decline of gold. Signs of economic slowdown in China had its negative impact on commodity prices as well. There are also prospects for monetary tightening in the United States that negatively affect the market. It is important to note, though, that the dollar (the usual culprit in decline of raw material prices) was not particularly strong today.

August contract for delivery of gold slumped 1.01 percent to $1,092.40 per troy ounce as of 11:57 on COMEX during the Wednesday’s trading session. September copper lost 1.45 percent of its value to trade at $2.4385 per pound. Futures for delivery of WTI crude oil tumbled 1.04 percent to $50.33 per barrel on NYMEX.

If you have any questions and comments on the commodities today, use the form below to reply.

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