Commodities Heading For Biggest Loss In 8 Months

Published 05/31/2012, 05:22 AM
Updated 05/14/2017, 06:45 AM
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  • Nickel slump seen ending as China faces ore curbs
  • Commodities heading for biggest loss in eight months on Europe
  • Oil enters bear market on Europe Debt Crisis, slow U.S. economy
  • Gold poised for worst monthly run in 13 years on European crisis
  • China plans to open Metal Futures to Foreigners Seen Helping LME
  • Copper set for biggest monthly drop in eight months on Europe concerns
  • Hong Kong Gold Trading in yuan Drops 78% from January record
  • Commodities are heading for biggest loss in eight monnths on Europe  crisis. Commodities fell for a third day and are poised for the biggest monthly loss since September as Europe's debt crisis escalated, driving crude into a so-called bear market as prospects for demand worsened. The Standard & Poor's GSCI Spot Index of commodities lost as much as 0.2 % to 601.94 and was at 602.19. The gauge, has fallen 12 % this  year.

    Oil

    Oil Enters Bear Market on Europe Debt Crisis, Slow U.S. Economy: 

    Oil entered a bear market in New York as it headed for the biggest monthly drop in more than three years on speculation Europe's worsening debt crisis and a slowing U.S. economy will reduce fuel demand. Futures today are 20 % lower than their highest settlement this year, a definition of a bear market. New York futures slumped 3.2 % yesterday. Oil tumbled to a seven-month low on speculation that U.S. crude stockpiles climbed to the highest level since 1990 and as the euro weakened on concern that the debt crisis will overwhelm Spain.

    Gold

    Gold Poised for Worst Monthly Run in 13 Years on European Crisis:

    Gold is poised for the worst run of monthly losses in almost 13 years as concern that Europe's fiscal crisis is escalating drove investors to seek the USD as a haven over the precious metal. Spot gold was little changed at $1,562.63  after climbing 0.5 % yesterday. Bullion is 6.1 % lower in May for its biggest drop this year as the USD rallied 5.4 % against a six-currency.

    Hong Kong Gold Trading in Yuan Drops 78% From January Record : Hong Kong's yuan-denominated gold trading slumped 78 % from its January peak as bullion prices tumbled, sales at jewelry retailers slowed and the currency weakened, said the city's century-old bullion bourse. Average daily trading volume was 533 million yuan ($83.7 million) this month, compared with 2.38 billion yuan in January, Chinese Gold & Silver Exchange Society President Haywood Cheung said.

    Copper

    Copper Set for Biggest Monthly Drop in Eight on Europe Concern:

    Copper may fall for a third day, heading for the biggest monthly drop since September, on concern that Europe's debt crisis will worsen, curbing demand for the metal used in wires and pipes. The metal for 3M  LME  declined as much as 0.7 % to $7,422.75 a metric ton, the lowest level since Dec. 29. The contract traded at $7,478.50 at 11:14 a.m. Shanghai time.

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