Commodity Blog

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Metals & Oil Reverse Rally

December 5, 2013 at 0:38 by Vladimir Vyun

Metals were rising yesterday, but are falling today. The rally was rather unexpected as US employment data was very good and fueled speculations that the Federal Reserve will scale back the size of its asset purchases this month. Unsurprisingly, the dollar jumped on the news, but for some reason retreated later. This allowed dollar-priced commodities to gain. Friday’s nonfarm payrolls are another piece of data that may affect markets in significant and unpredicted way. March futures for gold lost $5.1 (0.41 percent) to $1,242.1 per troy ounce as of 00:03 GMT on COMEX today after rallying to $1,247.2 yesterday. Copper futures were down $0.002 (0.62 percent) to $3.229 per pound following the advance to $3.249.

West Texas Intermediate crude oil was also rising yesterday, but fell today. The gains followed the drop of US stockpiles. The construction of the Keystone Pipeline System, which should bring oil from Canada to refineries in Texas, added to the rally. Yet WTI oil reversed its gains, while Brent grade maintained losses. January futures for WTI crude slipped $0.03 (0.03 percent) to $97.17 per barrel on NYMEX today after rising to $97.20 yesterday. Brent oil lost $0.74 (0.66 percent) to $111.88 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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