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No more save haven for Commodities as the financial turmoil starts hitting commodity pricesMonday, 26 September 2011
Commodity prices followed the downward path on Monday as market turmoil start infecting the sector previous thought was the shelter to falling prices of stocks and shares.
The gold has seemingly lost its status as a safe haven in troubled times and all of the increase observed in the coming to late summer have been wiped out.
Gold, which recently was up at record levels around $1900 per ounce fell 3.3 percent to $1,584. This is the result of a fall of 17 percent in three weeks. The contract for the supply of
The IMF meeting in Washington, discussed mainly the possibility to limit the crisis by creating a fire break around Greece, while the euro group's representatives were subjected to heavy pressure from all sides to do more to resolve the crisis.
AdvertisementDeclines in the commodity markets were broad in the morning. On the crude oil side of the market, Crude oil dropped around $2 more, which meant that in the U.S. at 8:30 am Swedish time, oil cost under $ 78 a barrel.
Market players continue at the same time trying to understand how the financial turmoil will hit economic growth and thus the final demand for oil and oil products. Mohammad Saleh Al Sada, oil minister in Qatar, said in a statement that demand has fallen while the supply situation is intact.
Libya is also expected to crank up their output during the rest of the year. Harouge Oil Operations, joint-venture between the Libyan state-owned National Oil Corp. and Petro Canada, will start pumping oil from the Amal field within a few weeks and full production, of about 100,000 barrels per day, is expected to be reached by the end of the year, reports Bloomberg News.
On the London Metal Exchange the three-month term on copper was at 8.30 down $466 per tonne to 6894, while zinc was down $ 80 for 1831. Copper and zinc their now trading at its lowest level since July 2010.
Silver prices fell 13 percent on Friday and the case continued on Monday morning. At 8:30 o'clock spot price had fallen further close to $4 to levels around $27, a drop of 12 percent.
By Scancomark.se Team
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