Commodity Blog

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

Archives

Unusual Behavior of Metal Market

February 5, 2015 at 19:37 by Vladimir Vyun

The European Central Bank made a surprise announcement today, saying it will no longer accept Greek bonds as collateral. But even more surprising was the reaction of markets to the news as safer assets declined while riskier ones gained. It looks like, while traders panicked initially, they calmed down after digesting the announcement.

Metals reacted in the similar weird fashion. Gold fell, though losses were small, and the metal may yet bounce. Usually, bullion trades inversely to the dollar, but today gold was falling together with the US currency.

Conversely, copper gained after the news. Of course, the industrial metal has additional supportive factor in the form of China’s stimulus that might have contributed to the metal’s rally.

April futures for delivery of gold inched lower 0.01 percent to $1,264.40 per troy ounce as of 19:32 GMT on COMEX today, falling by 0.16 percent intraday. March copper rose 0.41 percent to $2.6015 per pound.

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

Leave a Reply

required
required  

Navigation

Menu