Resource Intelligence
Resource News

COMMODITIES-Oil, copper pause from sharp fall, outlook shaky

By · June 24, 2009 · 12:34 pm · Leave a Comment

 

* Weaker dollar provides support for oil, copper, bullion

* Spot gold rallies from 6-week low, risk aversion supports

* Favourable crop conditions limit gains in U.S. grains

LONDON, June 23 (Reuters) – Oil moved into positive territory after falling below $67 a barrel, while a weak dollar lifted copper and gold from their lows, but investor jitters on the global economic outlook left some prices on shaky ground.

After showing some vulnerability to a broader sell-off in commodities during Asian trade earlier, gold prices were sustained as dollar weakness combined with its traditional role as a hedge against jittery sentiment in other asset classes.

The picture on industrial metals and crude was less clear, as doubts crept in about how sustainable recent strong rallies were looking, with a reassessment of share price gains and the global economic outlook fanning worries about potential demand.

“What people are concerned about now is was the rally a true growth story or was it a temporary re-stocking?” said Kona Haque, commodities strategist with Macquarie Group.

The World Bank said on Monday prospects for the global economy remained “unusually uncertain” as it cut 2009 growth forecasts for most economies.

“The World Bank report did not make it any easier…There’s a lot of doubt there and speculators have been a little bit less pro-risk,” Haque said.

U.S. crude was last up 50 cents at $68.04 per barrel, having earlier fallen below $67.

“The stock markets and global economic outlook pushed oil through key support levels but they (prices) now seem to be finding support,” said Christopher Bellew, a broker at Bache Commodities…read more at the Forbes

Enter your email address to receive actionable daily news.

Delivered by Google's Feed Burner!

.

Looking for metal prices? Click here!

  • WordPress

Leave a Reply

You must be logged in to post a comment.

Resource Intelligence