Date: Tuesday 22 Jun 2010
Crude oil advanced on Monday, tacking on 0.8% to the previous week’s 4.6% gain, as investors mulled China’s announcement that it will end the yuan's two-year peg to the dollar.Crude for July delivery, which expires on Tuesday, rose 64 cents to $77.82 a barrel on the New York Mercantile Exchange. Oil for August delivery, which will become the active contract on Wednesday, rose 35 cents to $78.61 a barrel.
China's announcement that it will allow a modest appreciation in its currency is likely to increase the number of oil imports to China.
A report showing a steady increase in oil demand from mainland China also supported oil prices. Figures by Platts showed demand rose 9.8% in May compared to the same month last year. Initial dollar weakness also spurred interest in oil.
Gold fell sharply on Monday as traders took profit on the recent record high and as risk appetite picked up.Comex gold for August delivery fell as much as $17.60 to $1,240.70 an ounce on the New York Mercantile Exchange after trading between $1238.20 and $1266.50 an ounce.
July silver fell 38 cents to $18.80 an ounce while copper for July delivery rose 6 cents to settle at $2.94 a pound.
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