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Commodities were boosted today by optimistic expectations for the global economy.
Commodities were boosted today by optimistic expectations for the global economy. Gold futures for December increased $3.70, or 0.3 percent, to $1,364.60 an ounce, according to MarketWatch. That was a continuation of the yellow metal’s gains the day prior, when the precious metal moved up $27.50 to end at $1,363.75 an ounce in New York.
Gold’s improvement has primarily been due to safe-haven demand prompted by sharp declines in Treasury bonds and the US dollar. Together, those factors offset concerns that the Federal Reserve will end its stimulus soon.
Silver for September dropped $0.08 today, to $22.86 an ounce, but it has still risen 12 percent overall this week, its biggest percentage increase since October 2011, MarketWatch reported. The day before, the white metal ended at $23.01 per ounce.
Analysts believe silver’s recent success is a result of strong physical demand and high expectations for the global economy. However, its future performance will rely largely on the Fed’s decision regarding stimulus.
Similarly, copper rose today on expectations of a global economic recovery. Three-month copper hit $7,420 a tonne in London, its highest level since June 6, according to Reuters. Earlier in the week, the commodity fell after reports showed an increase in supply and investors remained concerned about the Fed’s plan for quantitative easing.
Brent crude topped off the gains in commodities today. After a week of increases, it steadied above $110 per barrel, Reuters reported. Political issues in Egypt and Libya have caused worry over oil supplies, pushing Brent crude up. Futures for October rose $0.50, to $110.10 per barrel today.
Earlier in the week, supply concerns boosted Brent to a four-month high of $111.53, according to another Reuters article.
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