The trading week has started with losses for commodities. There were plenty of reasons for raw materials to perform poorly. Concerns about faltering economic growth of China were one of them. Renewed speculations about an interest rate hike from the Federal Reserve were another. And the
Crude oil has its own specific reason for a drop, which explains why crude fell harder than other commodities. The said reason was the continuing growth of the number of US rigs as was reported by Baker Hughes. It is true that the growth last week was minimal, but it was enough for traders to start speculating that the market is ready to return to a bear mode.
December contract for delivery of gold slipped 0.12 percent to $1,132.6 per troy ounce as of 10:37 GMT on COMEX today. Futures for copper fell 1.28 percent to $2.316 per pound. October Brent crude plunged 2.52 percent to $48.79 per barrel on ICE.
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