Commodities Update 11
Oil prices decrease further; Gold-Investors await Fed’s decision / Copper prices at three-week high
As economic growth data from the Eurozone is due out this week, oil prices were slightly down. Brent was down 0.55% for cargoes loading in October, WTI was down 0.5%. According to the Wall Street Journal disappointing growth data could depress the oil market. Increasing supply from members of the Organization of the Petroleum Exporting countries like Iran, could be a reason for a further decrease of oil prices. Concerns about China’s growth rate are also having a negative impact. Phillips Futures’ analyst Daniel Ang says that higher seasonal demand should have a positive impact on prices.
Due to a mixed U.S. labour report, gold prices were slightly lower on Monday. Until the Fed’s decision next week, whether they will raise interests rates, analysts don’t expect much movement in the gold prices. A poor monsoon season in India, leading to less demand for gold in the rural sections, contributed to lower gold prices.
Copper prices have been at their highest level since three weeks last Thursday. Prices increased by up to 2.4%. As recent data was revealing a contraction in Chinese factory activity, copper prices have been at their six-year low during the last weeks. The increase of the copper price could be explained through China’s announcement, that they will tighten the supervision of Chinese financial markets. Investors seem to believe in a more stable financial market and in further governmental support.