Commodity Blog

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Gold & Oil Reverse Earlier Gains

December 17, 2013 at 19:07 by Vladimir Vyun

Commodity markets become increasingly erratic ahead of the monetary policy announcement from the Federal Reserve tomorrow. Gold and crude oil advanced yesterday, but reversed gains today. Today’s data showed that US consumer prices were not growing last month, suggesting that it is too early to reduce stimulating measures. Such outlook should have been positive for commodities, but in fact it did not help. Of course, absence of inflation means that there is no need for gold as an inflation-hedge. Crude oil also fell even though analysts predict that US inventories will continue to decline.

February futures for delivery of gold sank as much as $14.2 (1.14 percent) to $1,230.2 per troy ounce as of 19:02 GMT on COMEX today. WTI grade of crude oil lost $0.36 (0.37 percent) to $97.12 per barrel on NYMEX. Brent grade tumbled $1.16 (1.06 percent) to $108.25 per barrel on ICE.

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