Commodities Round up

Commodities: Oil falls again, profit taking hits gold

Date: Monday 17 May 2010

Oil prices fell almost 4% on Friday, touching a three-month low, on persistent concern about European debt problems and as the dollar firmed against major currencies.

Crude for June delivery fell $2.79 to settle at $71.61 a barrel on the New York Mercantile Exchange.

Prices are now at the lowest level since February on fears that demand for energy will be hampered by economic instability in Europe.

Oil also came under pressure ahead of the June contract’s expiry on Monday with investors moving into July and August.

Traders also digested a string of US economic data on Friday including consumer sentiment. The Reuters/University of Michigan index rose to 73.3 in May from 72.2 in April a separate government report showed US retail sales rose 0.2% in April.

Gold settled lower on Friday after touching a record high earlier in the session. Gold for June delivery declined $1.40 to $1,227.80 an ounce on the Comex division of the New York Mercantile Exchange.

The yellow metal hit a high of $1,250 but as the session progressed, traders decided to take profit on bullion’s recent rally.

The stronger dollar hurt gold’s appeal, making it more expensive for holders of other currencies.

Silver for July delivery fell 27 cents to $19.22 an ounce while copper for June slipped 10 cents to $3.1340 a pound.