28 Nov 2014
Commodities take a beating after OPEC meet
The commodity space has been hit by a wave of selling since the Organization of Petroleum Exporting Countries (OPEC) decided to maintain daily production levels at 3 million barrels a day. The decline in the Crude prices to more than four-year lows sparked a rally in the US Dollar against the G-10 currencies.
The Base Metals pack suffered a double blow in the form of a strong USD and prospects of low production costs due to fall in the energy prices. Comex Copper is now down 3.11% to trade at USD 2.865/pound, a level last seen in 2010.
Meanwhile, precious metals too, have suffered losses, although most of which have been driven by a strong US dollar. Silver fell sharply by 4.59% to trade at USD 15.843/Oz levels, after having repeatedly failed earlier this week to rise above the 50-DMA level of USD 16.62. On the other hand, Gold prices are relatively resilient, trading 1.44% lower at USD 1181.00/Oz levels. The yellow metal also struggled to rise above the 50-DMA located at 1203 since last week. However, the metal is resilient on hopes that the European Central Bank would implement more aggressive monetary stimulus measures in the Eurozone.
Lastly, in the energy space, Brent Crude has recovered from to trade 0.45% higher at USD 72.86/barrels, while the WTI Crude for January delivery is down 5.89% at USD 69.30/barrels.
The Base Metals pack suffered a double blow in the form of a strong USD and prospects of low production costs due to fall in the energy prices. Comex Copper is now down 3.11% to trade at USD 2.865/pound, a level last seen in 2010.
Meanwhile, precious metals too, have suffered losses, although most of which have been driven by a strong US dollar. Silver fell sharply by 4.59% to trade at USD 15.843/Oz levels, after having repeatedly failed earlier this week to rise above the 50-DMA level of USD 16.62. On the other hand, Gold prices are relatively resilient, trading 1.44% lower at USD 1181.00/Oz levels. The yellow metal also struggled to rise above the 50-DMA located at 1203 since last week. However, the metal is resilient on hopes that the European Central Bank would implement more aggressive monetary stimulus measures in the Eurozone.
Lastly, in the energy space, Brent Crude has recovered from to trade 0.45% higher at USD 72.86/barrels, while the WTI Crude for January delivery is down 5.89% at USD 69.30/barrels.