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Gold & Silver Snap Rally, Coffee & Sugar Gain

February 19, 2014 at 4:27 by Vladimir Vyun

Gold and silver snapped their rally today. It was a bit surprising as macroeconomic data from the United States continued to disappoint, hurting the dollar before today’s minutes of the latest Federal Reserve policy meeting, while increasing demand for safer assets at the same time. Perhaps, traders just thought that the rally was too big and had persisted for too long, making the gains unsustainable. April futures for delivery of gold slipped $6.2 (0.47 percent) to $1,318.2 per troy ounce as of 4:15 GMT on COMEX today. March silver lost $0.14 (0.65 percent) to $21.76 per ounce.

Coffee and sugar rallied today on concerns that drought in Brazil will hurt the harvest. It is expected that the amount of precipitation will be 75 percent below the norm during the next five days. Brazil is the biggest exporter of the crops in the world, making weather conditions in the country very important for global supply. May futures for coffee jumped as much as $0.1255 (8.82 percent) to $1.5485 per pound on ICE today. Contract for sugar added $0.0051 (3.19 percent) to $0.1650 per pound.

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

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