Gold & Oil Fall on Global Slowdown, Nickel Drops on Surplus
The negative influence of the faltering global recovery and the debt situation in Europe were felt today on markets. Oil was down on the speculation that the weaker economy will lead to weaker demand. Meanwhile, gold also slipped as traders were selling the precious metal to cover losses from the slump of commodities.
Contract for delivery of crude oil in July dropped $0.66 to $98.63 per barrel in electronic trading on NYMEX. August futures for gold delivery retreated $13.60 (0.9 percent) to $1,515.60 by 13:53 on COMEX.
Nickel fell today on the speculation that the metal may have a biggest surplus in four years. Bank of America Merrill Lynch predicted that nickel’s surplus may reach 60,000 metric tons in 2012 from 12,000 tons this year. Nickel traded at $22,283 per metric ton as of 16:46 on LME. The metal dropped 10 percent this year and analysts think that it may fall by another 10 percent to $20,000 per ton.
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