Commodities Trading: 29 May 2014
A stronger US dollar combined with a slightly weaker stock market
to drive Nymex crude lower yesterday, with the market falling $1.05 to hit $103.08 per barrel.
In the background there's the overall picture of a market awash with oil supplies and the forecast of a drop in US GDP does not bode well for crude.
The short-term trend has definitely shifted south.
There was no bounce for gold yesterday after reports in the media that bullion-backed exchange traded assets are at their weakest level since 2009 caused a nosedive on Tuesday.
In fact, the precious metal kept drifting, losing another $5.4 to close at $1,258.7.
Commodities Trading: 28 May 2014
Expectations for large crude oil supplies sent WTI prices $0.10 lower yesterday to close at $104.17 per barrel.
The recent rally in equities is attracting the bulk of investors' interest so commodities are under increased pressure at the moment.
The weekly inventories numbers will be released tomorrow due to the Memorial Day holiday.
Whilst better than expected US economic data pushed the S&P 500 index
to a new all-time high, gold prices plunged to a 15 week low.
The precious metal lost a significant $29.2 to $1,263.6, with its short and medium-term trends resuming their southward trajectory.
Commodities Trading: 27 May 2014
Ahead of consumer confidence data in the US, which is poised to indicate a rebound in May, crude prices remained elevated.
Expecting strong oil demand, investors did not rush to take profits so the WTI prices moved just $0.15 down to $104.19.
Social unrest in Ukraine did not escalate as some analysts might have predicted following Presidential elections over the weekend.
As a result, gold prices remained below the psychologically important $1,300 mark, ending a very quiet session $1.3 lower at $1,293.
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By Jonathan Sudaria, 30 May 2014