Bad Day in Commodity Markets as Oil and Metals Plunge
Despite a relatively flat US Dollar in both the European and North American trading sessions, it was a bad day in the commodity markets with declines in all areas except natural gas.
Gold and Silver
Precious metals fell sharply on Tuesday, extending losses from Monday, as investors looked ahead to the Federal Reserve monetary policy meeting this week. Gold, having reached a 13-month high last week, has since declined 2%. Despite this, the yellow metal is still set to record one of its strongest opening quarters in nearly 30 years. At time of writing, Gold was down 1.13%, whilst Silver dropped 1.56% as investors continued to cash in on last weeks gains.
Crude Oil prices saw another session of declines as investors moved away from the black commodity, sending prices to a 1-week low. The broad sell off in oil follows reports that Iran quashed hopes that there would be a coordinated halt to oil production in the near future.
Tomorrow sees the release of the weekly API figures and investors appear to be bracing themselves for the worst. Crude Oil fell 1.99% to $36.44 a barrel, having fallen more than 3% at one point during the trading day, before rallying a little. Brent Oil was down 1.92% to $38.77 a barrel.
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