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2 Oct 2013
Commodities sink amidst US budget impasse
FXstreet.com (Athens) – While the major commodities traded broadly lower on Tuesday, due to the U.S. government's first partial shutdown in 17 years, today gold moves on the upper level and oil is trading sidelines.
Except for gold, which is moving to the upper level since early European trading session, the other major commodities still can’t help themselves to regain uptrend momentum. At the time of writing, WTI Crude oil is heading downwards (-0.53%), Brent Crude down (-0.44%), and gold is slightly heading upwards (+0.31%). Elaborating on, while gold is heading in a corrective uptrend way after its yesterday’s sharp selloff, it’s still trading well below $1300/oz. However, it might well considered as a bit peculiar movement (taken for granted that gold is one of the most safe-haven assets), amidst the US default in its debt and Italian political “jitters.” Yesterday, gold sank nearly 3% to its lowest level in almost two months as an unusually large trade in the New York futures market rattled investors already edgy over a partial shutdown of the U.S. government.
Furthermore, U.S. Comex gold futures for December maintained those losses throughout the session, settling down $40.90 at $1,286.10, with total trading volume about 20 percent above its 30-day average. Finally, Spot gold fell 2.8 percent to $1,289.51 having earlier hit $1,282.59, its lowest price since Aug. 7. As far as regarding oil, oil prices ended lower on Tuesday and extended losses after the market closed as U.S. politicians continued battling over how to overcome a budget impasse that shut down Federal agencies and programs. Precisely, Brent crude settled 43 cents lower at $107.94 after trading as low as $106.81. It was trading 79 cents lower at $107.58. U.S. crude oil ended the day 29 cents lower at $102.04 a barrel, after dropping to a low of $101.06. It was last trading at $101.59, down 0.53%.
Last but not least, the dollar index hit a near eight-month low of 79.864 before recouping some ground to trade at 80.100, down 0.14 percent. However, traders should bear in mind that the close of the US government does not necessarily lead to the greenback strengthening; lots of analysts suggest that the American dollar might move even further downwards, as the US default in its own debt might encourage traders to consider that Fed can now delay further tapering, and –all other equal- all long as tapering is “later” than “sooner”, it is very probable that the greenback might move the down trend.”
Except for gold, which is moving to the upper level since early European trading session, the other major commodities still can’t help themselves to regain uptrend momentum. At the time of writing, WTI Crude oil is heading downwards (-0.53%), Brent Crude down (-0.44%), and gold is slightly heading upwards (+0.31%). Elaborating on, while gold is heading in a corrective uptrend way after its yesterday’s sharp selloff, it’s still trading well below $1300/oz. However, it might well considered as a bit peculiar movement (taken for granted that gold is one of the most safe-haven assets), amidst the US default in its debt and Italian political “jitters.” Yesterday, gold sank nearly 3% to its lowest level in almost two months as an unusually large trade in the New York futures market rattled investors already edgy over a partial shutdown of the U.S. government.
Furthermore, U.S. Comex gold futures for December maintained those losses throughout the session, settling down $40.90 at $1,286.10, with total trading volume about 20 percent above its 30-day average. Finally, Spot gold fell 2.8 percent to $1,289.51 having earlier hit $1,282.59, its lowest price since Aug. 7. As far as regarding oil, oil prices ended lower on Tuesday and extended losses after the market closed as U.S. politicians continued battling over how to overcome a budget impasse that shut down Federal agencies and programs. Precisely, Brent crude settled 43 cents lower at $107.94 after trading as low as $106.81. It was trading 79 cents lower at $107.58. U.S. crude oil ended the day 29 cents lower at $102.04 a barrel, after dropping to a low of $101.06. It was last trading at $101.59, down 0.53%.
Last but not least, the dollar index hit a near eight-month low of 79.864 before recouping some ground to trade at 80.100, down 0.14 percent. However, traders should bear in mind that the close of the US government does not necessarily lead to the greenback strengthening; lots of analysts suggest that the American dollar might move even further downwards, as the US default in its own debt might encourage traders to consider that Fed can now delay further tapering, and –all other equal- all long as tapering is “later” than “sooner”, it is very probable that the greenback might move the down trend.”