Commodity Blog

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


Oil Falls on US Budget Impasse, Gold Rises as Evans Speaks

September 28, 2013 at 1:33 by Vladimir Vyun

Crude oil declined as talks about the budget continue, leading to risk of a government shutdown. It will definitely not be good for the economy. Crude also fell as the United Nations issued a resolution yesterday to destroy Syrian chemical weapons. November futures for delivery of WTI crude oil lost $0.16 to settle at $102.87 per barrel on NYMEX. Brent grade of oil went down $0.58 (0.53 percent) to $108.63 per barrel on ICE.

Gold rallied as Federal Reserve Bank of Chicago President Charles Evans said that it is too early to make any significant changes to monetary policy, suggesting that quantitative easing tampering will not happen soon. Evans said yesterday:

I can’t have tremendous confidence in our economic situation. A lot of developments are still under way. At the moment, the data doesn’t provide us with confidence to make major adjustments.

Absence of QE tampering is positive for the commodity market. December futures for gold surged $15.1 (1.14 percent) to $1,339.2 per troy ounce on COMEX.

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

Leave a Reply