Advance of Crude Oil & Cattle; Drop of Gold on Lack of Demand
Cattle futures climbed today, following yesterday’s drop. Futures fell yesterday after a case of bovine spongiform encephalopathy (or simply mad cow disease) was discovered in the United States. Four biggest importers of US meat (Canada, Japan, Mexico and South Korea) said that they will continue to buy US beef, causing prices to rebound today.
Crude oil advanced today after the Federal Open Market Committee said that the US economic recovery will gradually accelerate over time. The FOMC left the monetary policy unchanged today and said in the statement that it “expects economic growth to remain moderate over coming quarters and then to pick up gradually”. US crude oil inventories increased by 4.0 million barrels, while total motor gasoline inventories decreased by 2.2 million barrels last week. June futures for delivery of crude oil advanced $0.84 (0.8 percent) to $104.39 per barrel by 13:33 on NYMEX, while earlier it reached $104.57, the highest level in a week. Brent crude climbed from $118.33 to $119.08 per barrel as of 18:33 GMT on ICE today, while earlier it declined to $117.45.
Gold fell as demand remained low despite the festival in India that is considered to be a good time to buy precious metals. The uncertain political situation in France and Netherlands also damps demand for the metal. On the other hand, data shows that central banks across the world continue to buy gold for expanding their reserves. Gold price fell from $1,641.30 to $1,629.90 on COMEX today.
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