Monday, June 14, 2010

Commodities: Oil settles lower, gold gains

Date: Monday 14 Jun 2010
Crude oil snapped its winning streak on Friday as a weaker than expected US retail sales report soured sentiment.

Crude oil for July delivery fell $1.70 to settle at $73.78 a barrel on the New York Mercantile Exchange. Over the week crude prices advanced more than 3%.

Retail sales figures for May fell by 1.2% when economists expected a 0.3% rise. They rose 0.4% the previous month. Sales excluding autos fell 1.1% against expectations of a 0.1% rise.

A report showing China's consumer price inflation rose above 3% for the first time in over a year also hurt sentiment. The figures sparked concern that China will take measures to cool its economy.

However the University of Michigan's consumer sentiment provided some cheer after the index surged to 75.5 in June, much better than the 74.8 forecast and from 73.6 in May.

Meanwhile among precious metals Comex gold for August delivery settled up $8.00 Friday at $1230.20 an ounce after hitting this week’s record high of $1,245.60 an ounce on Tuesday.

Gold finished higher, after a two day retreat, after disappointing retail sales data drove demand for bullion ahead of the weekend.

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