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Monday, August 29, 2011

Commodities markets summary august 29 2011

Commodities markets summary august 29 2011 ; Oil prices jumped Monday in New York on news of a rebound in US consumer spending and relief that Hurricane Irene had caused no major damage to the petroleum industry on the nation's eastern coast.

New York's main contract, light sweet crude for delivery in October, closed at $US87.27 a barrel, up $US1.90 from Friday. In London, Brent North Sea crude for October delivery gained 52 US cents to settle at $US111.88 in thin trade due to a British public holiday

Stock markets in the United States, the world's biggest oil consumer, appeared to find reasons to believe Monday in the economy's potential to exit a slump that has some worrying about a return to recession.

Consumer spending rose 0.8 per cent in July, following a 0.1 per cent dip in June, the Commerce Department said.

The impact of Hurricane Irene, which battered the US east coast over the weekend, on oil operations was relatively weak, analysts said.

PRECIOUS METALS

Gold prices trimmed early steep losses in thin trade on Monday, with bullion down about 2.25 per cent after Wall Street stocks rallied as investors' risk tolerance increased.

But the downside was limited for the yellow metal, sought as a safe-haven in times of uncertainty or fear, with some players regarding declines as buying opportunities.

Spot gold was down 2.28 per cent at $US 1,783.20 an ounce at 2pm EDT (0400 AEST). Prices were highly volatile last week, sliding more than $US200 from their early peak at a record $US1,911.46 an ounce, dropping towards $US1,700.

In New York, COMEX gold for December delivery was off $US10.6 per ounce at $US1,786.7, a 0.60 per cent decline.

Gold's moves were limited in both directions by light volumes, however, with a bank holiday keeping London trade light and New York desks thinly staffed following a hurricane wracked US East Coast.

Dollar strength also pressured gold prices when it gained against the yen and Swiss franc, as strong US consumer spending data reduced fears of another recession.

Silver was down about two per cent at $US40.44 an ounce, tracking weakness in gold prices.

Spot platinum was down 0.5 per cent at $US1,817.99 an ounce, while spot palladium was lower at $US747.95 an ounce than $US752 at Friday's close.

BASE METALS

COMEX copper fell moderately on Monday, reversing earlier gains, when the dollar turned positive following a strong US personal spending reading, but selling was limited as the industrial metal found support from a rallying US stock market.

Moves were limited in both directions by light volumes with the London Metal Exchange closed by a bank holiday and New York desks thinly staffed following a hurricane wracked US East Coast.

The benchmark US September copper contract sold on the COMEX exchange was down $US1.25 at $US4.0865 per lb, about mid-range for trading during August. Earlier, it rose to $US4.1140 and fell as low as $US4.0575 a lb.

Dollar strength put some pressure on copper prices when it gained against the yen and Swiss franc, as strong US consumer spending data reduced fears of another recession.

US consumer spending rose at its fastest pace in five months in July, a further sign the economy is not falling back into recession, although manufacturing activity in Texas almost stalled this month.

Consumer spending increased 0.8 per cent on strong demand for motor vehicles as Japan-related supply restraints faded, a Commerce Department report showed on Monday. Spending had slipped 0.1 per cent in June.

So far, data from industrial production to retail sales and employment have been consistent with a slow-growth scenario rather than an outright contraction in economic output. For the latest updates PRESS CTR + D or visit Stock Market news Today

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