Commodity Blog

Commodity news, technical and fundamental analysis, market data on precious metals, energies, industrial metals, and soft commodities


Commodities Step into Massive Correction

April 26, 2011 at 17:34 by Andriy Moraru

Almost all hard commodities are falling today. Big drops can be seen in silver, gold, oil and platinum. Despite a favorable situation in the US stock market, the commodities seem to be bothered by the possibility of the monetary policy tightening.

Commodity speculators are awaiting Federal Reserve statement on the future of the US financial regulation that will be released tomorrow. The market sentiment goes that Ben Bernanke may stop buying treasury notes with Fed’s money, effectively closing down the main fuel source for the speculative growth in the all-favorite silver, gold and oil. Meanwhile, further credit tightening in China is a sure-fire killer for the rally in the industrial metals.

Silver posted the biggest single day absolute loss in years today, following a streak of 9 consecutive days of gain. Nevertheless, April remains a huge winner month for this metal. Gold managed to decline to the minimum level since last Wednesday, confirming its yesterday loss, which followed an all-time record high. Platinum goes down for the first day in the last 5 days, still trading quite low compared to the above-mentioned precious metals.

Spot silver price decreased from $46.85 to $45.30 per troy ounce after reaching as low as $44.42 per troy ounce today. Gold declined from $1,506.86 to $1,503.15 after going to as low as $1,492.90. Platinum is now trading at about $1,803.00 as of 17:31 GMT after opening at $1,825.70 today.

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

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