Even though gold was pummeled earlier in the trading session, dropping to a two-week low of $828.40, it was able to settle up by $33 to finish the day at $$866.20 for December delivery. It was the only commodity in the positive for the day.
Even though gold was in the positive, it hasn't performed in the difficult enconomic environment as a place of safety, as jewelery sales decline, the U.S. dollar is holding some of its strength, and speculators hang on to their money.
When the dollar falls, at that time gold should enjoy a hefty climb again.
The Reuters-Jefferies CRB Index participated in the decline along with individual commodities, as it plunged to a 13-month low, following the worst week of its history.
Oil continued to fall in price as well, as it dropped below $88 a barrel to $87.81 in the U.S., while London Brent crude settled at $83.68 for the day, a $6.57 decline.
Other significant declines in the commodities market were soybeans, which fell over 7percent to yearly lows, while copper also fell by over 7 percent to a 19-month low of $2.493 a pound in New York. Corn finished at its trading limit of 30 cents a bushel to settle at $4.24 on the CBOT, a 6.6 percent fall.
Showing posts with label Reuters/Jefferies CRB Index. Show all posts
Showing posts with label Reuters/Jefferies CRB Index. Show all posts
Monday, October 6, 2008
Wednesday, April 23, 2008
Commodities Reach New Highs, Reuters/Jefferies CRB Index Highest Since 1956
Commodities surged again today, as 18 of 19 raw materials in the Reuters/Jefferies CRB Index climbed. The index itself reached the highest levels since September of 1956, as it rose by 1.8 percent to 422.91. The CRB Index has enjoyed a gain of 18 percent so far in 2008.
The only commodity in the CRB Index not rising was natural gas.
Among records reached today were oil, which went as high as $119.90 a barrel, while gasoline futures, for the first time, passed $3 a gallon.
The euro also broke a record against the greenback, rising to $1.6019 on Tuesday.
"The weaker dollar was the key driver for commodities across the board today," said Evan Smith, who helps manage $1.5 billion at US Global Investors in San Antonio. "The bigger theme is that there is robust global commodity demand."
According to Citigroup, worldwide investments in commodities grew by over 20 percent in the first quarter, reaching $400 billion.
The only commodity in the CRB Index not rising was natural gas.
Among records reached today were oil, which went as high as $119.90 a barrel, while gasoline futures, for the first time, passed $3 a gallon.
The euro also broke a record against the greenback, rising to $1.6019 on Tuesday.
"The weaker dollar was the key driver for commodities across the board today," said Evan Smith, who helps manage $1.5 billion at US Global Investors in San Antonio. "The bigger theme is that there is robust global commodity demand."
According to Citigroup, worldwide investments in commodities grew by over 20 percent in the first quarter, reaching $400 billion.
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