Gold futures plunged, Oil traded higher

Gold futures shifted trend and traded aggressively lower after reaching a three week high in Wednesday’s US session.

On the New York Mercantile Exchange’s Comex division, gold futures for August delivery dropped 1% to 1,277.55 USD per troy ounce on Wednesday.

Gold futures were expected to find support at 1,237.05 USD a troy ounce and resistance at 1,301.75 USD.

Earlier in the session traders bid bullion higher after Federal Reserve Chairman Ben Bernanke reported the pace of the central bank’s bond purchases is not a “preset course”.

Bernanke said: “I emphasize that, because our asset purchases depend on economic and financial developments, they are by no means on a preset course”.

Bernanke also restated that the Fed will sustain its accommodative monetary policy for the upcoming future.

Comex silver for September delivery dropped 2.47% to 19.443 USD per ounce while copper for September delivery dropped 1.76% to 3.130 USD per ounce.

Oil futures traded higher in late US trading hours, however cut off gains seen earlier in the session.

On the New York Mercantile Exchange, sweet crude futures for September delivery increased 0.17% to 105.87 USD on Wednesday after reaching as high as 106.11 USD a barrel.

Earlier on Wednesday, the US Energy Information Administration reported in its weekly report that US crude oil inventories dropped by 6.9 million barrels in the week ended July 12th, much lower than expectations for a decline of 2 million barrels.

Total US crude oil inventories stood at 367.0 million barrels as of last week. Total motor gasoline inventories grew by 3.1 million barrels, in contrary to expectations for a decline of 0.5 million barrels.

Elsewhere in Angola, a member of the Organization of Petroleum Exporting Countries, forecast for its daily output for September is 1.67 million barrels, below the 2 million barrels per day target. The country expects to pump 1.7 million barrels a day next month.

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