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Good Data from USA Helps Crude Oil, Hurts Precious Metals

December 6, 2013 at 23:21 by Vladimir Vyun

Crude oil rallied and precious metals declined today as economic data from the United States were positive. The major report today was nonfarm payrolls and it provided a surprise as US employment grew more than was expected. Payrolls advanced by 203,000 in November, while analysts predicted less impressive growth by 180,000. What is more, the unemployment rate fell from 7.4 percent not to predicted 7.3 percent, but to 7.0 percent. Most other economic indicators released on Friday were good too.

On the one hand, the positive data suggests that US economy is improving. This helps the energy market, but drives investors away from safer assets, like precious metals. On the other hand, signs of positive developments should encourage the Federal Reserve to reduce its monetary stimulus. This should be negative both for crude and for metals.

February futures for delivery of gold slid $2.9 (0.24 percent) to settle at $1,229.0 per troy ounce on COMEX today. March contract for silver lost $0.05 (0.26 percent) to $19.52 per ounce. January futures for delivery of WTI crude oil gained $0.27 (0.28 percent) to $97.65 per barrel on NYMEX. Brent crude advanced $0.62 (0.56 percent) to $111.60 per barrel on ICE.

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

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