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Commodities crumble on Fed plans, China crunch; gold settles at 33-month low

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Commodities stumbled on Thursday as gold, oil and copper declined on worries the central bank of the world’s largest economy could start to slow the flow of monetary stimulus and as China’s cash crunch worsened.

Gold for August delivery dropped $87.80 an ounce to finish at $1,286.20 in Nymex floor trade, the lowest settlement since September 2010. 

Crude oil for July delivery shed $2.84 to settle at $95.40 a barrel on the New York Mercantile Exchange, after touching $95.09, the lowest since June 13.

July silver shed $1.80 to close at $19.82 an ounce, while July platinum gave back $60.10 to close at $1,363.80 an ounce, its lowest level since December 2011. 

Copper prices for July delivery trimmed an initial loss to close one cent lower at $3.14 a pound.

September palladium lost $31.30 to settle at $665.10 an ounce. 

U.S. Federal Reserve Chairman Ben Bernanke said on Wednesday that the Fed may start tapering bond purchases that have fueled gains in markets globally. The central bank could end the program next year should risks to the economy abate, he said. 

Benchmark money-market rates in China, the world’s biggest user of energy and metals, climbed to records, and a private report showed manufacturing shrank at a faster pace, spurring concern that raw-material demand is slowing.  Reported by Proactive Investors 45 minutes ago.

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