Second Session of Losses for Crude & Silver
Crude oil continued to fall today, following yesterday’s slump, as Storm Isaac passed the Gulf of Mexico. The hurricane has not done significant damage and production should resume rather soon. At least some damage was priced in and now crude has lost that premium. Crude oil was down from $95.02 to $94.67 per barrel on NYMEX as of 20:07 GMT today.
Silver also extended its decline from yesterday, following gold, amid speculations that the Federal Reserve may refrain from easing its policy on the next policy meeting. Fed Chairman Ben Bernanke will speak at Jackson Hole tomorrow and market participants hope to get hints about future actions of the US central bank as it had happened before the second round of quantitative easing. Yet fundamentals are not in favor of additional stimulus. The unemployment claims were stable last week, giving hope that the labor market is recovering. The data added to yesterday’s housing report. Housing and employment were two major concerns for the Fed and more stimulating measures do not look warranted considering that the sectors are improving. Silver declined from $30.63 to $30.36 per ounce today on COMEX.
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