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20 Sep 2013
Crude Oil collapses after a bout of buying to cover short positions
FXstreet.com (Athens)- The Commodities moved on a mixed way on Thursday, as the greenback recovered yesterday, a day after incurring sharp losses following the Federal Reserve's shock decision to keep its stimulus program intact.
Commodities on mixed ways; oil falling apart while gold rises to one week highs
Oil fell sharply on Thursday after a bout of buying to cover short positions ended and traders refocused on increased Libyan production and dwindling geopolitical concerns about Iran. What’s more, the November Brent crude settled 1.66 percent lower or $1.84 per barrel lower at $108.76. Losses deepened in a heavy bout of morning trading that sent prices down $1 in 30 minutes. Furthermore, the October U.S. crude which expires on Friday slid 1.55 percent and settled $1.68 per barrel lower at $106.39. The premium of November Brent over U.S. crude narrowed to $2.68 per barrel during the session and settled at $2.90, well off levels of over $8.
Gold rose to one-week highs on Thursday, extending the previous session's 4.2 percent rally, lifted by technical buying and short-covering a day after the U.S. Federal Reserve's unexpected decision to continue buying bonds. Spot gold hit its highest level since Sept. 10 at $1,374.54. It last traded at $1,353.00 an ounce, up 0.2 percent. U.S. gold futures for December delivery settled up $61.70 at $1,369.30, with trading volume at about 15 percent above its 30-day average. Among other precious metals, silver rose 1.2 percent to $23.15 an ounce, having rallied around 6.5 percent on Wednesday, its biggest one-day gain since November 2008.
Commodities on mixed ways; oil falling apart while gold rises to one week highs
Oil fell sharply on Thursday after a bout of buying to cover short positions ended and traders refocused on increased Libyan production and dwindling geopolitical concerns about Iran. What’s more, the November Brent crude settled 1.66 percent lower or $1.84 per barrel lower at $108.76. Losses deepened in a heavy bout of morning trading that sent prices down $1 in 30 minutes. Furthermore, the October U.S. crude which expires on Friday slid 1.55 percent and settled $1.68 per barrel lower at $106.39. The premium of November Brent over U.S. crude narrowed to $2.68 per barrel during the session and settled at $2.90, well off levels of over $8.
Gold rose to one-week highs on Thursday, extending the previous session's 4.2 percent rally, lifted by technical buying and short-covering a day after the U.S. Federal Reserve's unexpected decision to continue buying bonds. Spot gold hit its highest level since Sept. 10 at $1,374.54. It last traded at $1,353.00 an ounce, up 0.2 percent. U.S. gold futures for December delivery settled up $61.70 at $1,369.30, with trading volume at about 15 percent above its 30-day average. Among other precious metals, silver rose 1.2 percent to $23.15 an ounce, having rallied around 6.5 percent on Wednesday, its biggest one-day gain since November 2008.