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Commodities Retreat from Peaks on German WPI, Other News

July 11, 2013 at 17:42 by Andriy Moraru

Various commodity markets have been shaken and stopped in their multi-day rallies today as the traders reacted to the news released in Europe and United States. Oil, gold and palladium turned out to be among the biggest losers, while such assets as platinum held their ground.

Oil WTI spot price retraced from the new record high since the late March levels today after the German Statistisches Bundesamt reported continued decline in wholesale prices for the month of June. It came out at 6:00 GMT. Although the month-to-month drop of 0.4 percent was exactly the same as the value reported for May, it was significantly lower than the forecast of 0.3 percent growth. Moreover, the main decline was in oil-derived products and other raw industrial materials.

Additionally, oil prices were under pressure from the oil market report for July released by the International Energy Agency today. It states that the agency expects global non-OPEC production of oil to outpace global demand by 0.1 million barrels per day in 2014, which basically means excess supply and lower projected prices.

Gold has renewed its maximum level since June 23 today before going down below yesterday’s close level. Serving more as an investment vehicle, which became rather speculative lately, the precious metal interrupted its previous growth both on the news from Germany and following the poor employment report from the United States. It has shown an increase in the initial unemployment claims from 344,000 to 360,000 last week.

Spot oil (Light Sweet) declined from $106.4 to $104.61 per barrel as of 17:37 GMT today following an intraday peak of $107.43 per barrel. Spot gold price went down from $1,282.86 to $1,281.01 per troy ounce after setting a local maximum at $1,298.64 today.

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

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