5 Sep 2013
Commodities dropped sharply despite weakened DXY
FXstreet.com (Athens)- Commodities lost solid ground yesterday, despite the DXY fell 0.3% to 82.131.
The dollar fell from a six-week high against major currencies on Wednesday as investors booked profits on its recent gains before jobs numbers due this week and amidst ‘revenge’ jitters on behalf of Russian PM Putin.
The dollar index fell 0.3 percent to 82.131, retreating from Tuesday's peak of 82.516, its highest since July 22. While the ‘greenback’ got depreciated across the board, commodities did not trade upwards as usually happens (due to the fact that commodities are denominated in $USD). Brent crude oil settled lower on Wednesday, but with a less dramatic drop than U.S. oil, as it appeared a military strike against Syria would remain limited, quelling fears of supply disruptions in the Middle East.
What’s more, front-month Brent crude oil futures settled 77 cents lower at $114.91, after trading as high as $116.09 and as low as $114.40.U.S. crude oil for October delivery settled at $107.23 a barrel, $1.31 lower, or 1.2 percent, after trading between $106.77 and $108.61. Last week, U.S. crude oil traded at its highest peak this year at $112.24. It then traded down to $104.21 earlier this week when military action against Syria was less certain. Furthermore, the spot price of gold dropped 1.5 percent to $1,390.61 an ounce, as strong U.S. auto sales boosted economic hopes and fears of a Western-led military strike against Syria lost some of their urgency. Last but not least, silver dropped 3.1 percent to $23.42 an ounce, its biggest daily drop since July 17. This should not take aback traders, as when gold loses ground, most of times the silver metal follows the collapse at a much faster pace.
The dollar fell from a six-week high against major currencies on Wednesday as investors booked profits on its recent gains before jobs numbers due this week and amidst ‘revenge’ jitters on behalf of Russian PM Putin.
The dollar index fell 0.3 percent to 82.131, retreating from Tuesday's peak of 82.516, its highest since July 22. While the ‘greenback’ got depreciated across the board, commodities did not trade upwards as usually happens (due to the fact that commodities are denominated in $USD). Brent crude oil settled lower on Wednesday, but with a less dramatic drop than U.S. oil, as it appeared a military strike against Syria would remain limited, quelling fears of supply disruptions in the Middle East.
What’s more, front-month Brent crude oil futures settled 77 cents lower at $114.91, after trading as high as $116.09 and as low as $114.40.U.S. crude oil for October delivery settled at $107.23 a barrel, $1.31 lower, or 1.2 percent, after trading between $106.77 and $108.61. Last week, U.S. crude oil traded at its highest peak this year at $112.24. It then traded down to $104.21 earlier this week when military action against Syria was less certain. Furthermore, the spot price of gold dropped 1.5 percent to $1,390.61 an ounce, as strong U.S. auto sales boosted economic hopes and fears of a Western-led military strike against Syria lost some of their urgency. Last but not least, silver dropped 3.1 percent to $23.42 an ounce, its biggest daily drop since July 17. This should not take aback traders, as when gold loses ground, most of times the silver metal follows the collapse at a much faster pace.