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HB FRANKFURT. The stronger dollar has slowed down on Tuesday the soaring price of gold. Generally regarded as safe haven precious metal prices were down by 0.4 percent per troy ounce on $ 1,347 after the price was in the past week rose to a record high of 1364 dollars.
The U.S. currency made good ground against the euro, as investors speculated that the volume of a further cash injection by the U.S. central bank could be lower than expected. The euro fell to $ 1.3774 and at times, its lowest level in a week.
Given the uncertain global economic prospects of the gold price should be according to estimates by analysts, but only briefly under pressure. The inflation is still increasing, and the waning market confidence in the stability of the monetary system, said Mike Ullman, CEO of specializing in gold and commodity investments investment house ERA Resources. "As a reserve currency, gold will therefore learn more in the coming years attention."
The recovery in the dollar on Tuesday also expressed on the oil price. Ahead of the OPEC meeting on Thursday, Saudi Arabia has signaled that the present production capacity is maintained. According to traders, investors focused again after this statement on the foreign exchange market developments.
With a stronger dollar, oil for investors from other currency areas is more expensive, and reducing their demand. A barrel of U.S. WTI prices were down by 0.5 percent to $ 81.84. The North Sea Brent crude cost $ 83.44 and which is 0.3 cents less than in the previous day’s late business.
After the sharp gains the previous day, investors were on Tuesday copper on the left. The price for a ton of the industrial metal prices were in the top 1.5 percent to $ 8,165. Dealer justified the price drop with disappointed expectations of investors in the economic development in China and the U.S..
Doubts about the future growth of China has been fueled by tighter lending rules for some large Chinese banks. Also who may be expecting too much from the economic aid from the U.S. central bank pushed the demand. "It’s the broad concern that the hopes may be far been the reality," said Arne Lohmann Rasmussen, chief analyst at Danske Bank. The copper price has risen since his eight-month low in June, just over 30 percent.
On the wheat market, it went to the recent price rally to a little more relaxed: the agricultural commodity was 0.6 per cent to 7.05 per bushel for dollars. Corn hovered around his day rate of 5.55 dollars. Recent estimates by the U.S. Department of Agriculture, the world grain harvest this year remain below expectations, had driven the prices of agricultural commodities to new highs recently.
Tags: foreign exchange market, precious metal prices, commodity investments, wti prices, global economic prospects Wednesday, October 13th, 2010 at 3:12 amYou can leave a response, or trackback from your own site.You can follow any responses to this entry through the RSS 2.0 feed.
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