22 Aug 2013
Commodities in choppy on Wednesday; back on the upwards track today
FXstreet.com (Athens): Commodities fall on Wednesday, as U.S. Treasury yields rose after the minutes from the latest Federal Reserve policy meeting showed few clues about the timing to scale back its bond-buying stimulus.
Commodities head again upwards, after yesterday’s collapse
While the dollar index rose 0.6 percent to 81.362 on Wednesday, commodities were under severe pressure due to ‘risk-aversion’ mood ahead of the FOMC release. Global oil prices fell, as heavier losses in U.S. crude widened the trans-Atlantic spread for a second day, amid signs Libyan exports might resume and indications oil was flowing into the depleted Cushing storage hub. Brent futures for October fell 34 cents to settle at $109.81 a barrel. U.S. October oil fell $1.26 to $103.85 barrel, off a session low $103.50. The spread between the two stood at $5.96 at the close after earlier widening to $6.23. Gold fell as well in choppy trade on Wednesday as U.S. Treasury yields rose after the minutes release. Spot gold fell 0.4 percent to $1,365.31 an ounce, while Silver was last up 1% percent at $23.11 an ounce.However, today after solid HSBC China Manufacturing PMI release (50.1 expected: 48.2, prior: 47.7) and Euro zone PMI data blasted expectations, rising to two year highs, commodities erased their yesterday’s losses, coming again in positive area.
Commodities head again upwards, after yesterday’s collapse
While the dollar index rose 0.6 percent to 81.362 on Wednesday, commodities were under severe pressure due to ‘risk-aversion’ mood ahead of the FOMC release. Global oil prices fell, as heavier losses in U.S. crude widened the trans-Atlantic spread for a second day, amid signs Libyan exports might resume and indications oil was flowing into the depleted Cushing storage hub. Brent futures for October fell 34 cents to settle at $109.81 a barrel. U.S. October oil fell $1.26 to $103.85 barrel, off a session low $103.50. The spread between the two stood at $5.96 at the close after earlier widening to $6.23. Gold fell as well in choppy trade on Wednesday as U.S. Treasury yields rose after the minutes release. Spot gold fell 0.4 percent to $1,365.31 an ounce, while Silver was last up 1% percent at $23.11 an ounce.However, today after solid HSBC China Manufacturing PMI release (50.1 expected: 48.2, prior: 47.7) and Euro zone PMI data blasted expectations, rising to two year highs, commodities erased their yesterday’s losses, coming again in positive area.