US Stocks Decline; Gold, Crude Oil and Copper Falls

U.S. Stocks Decline From Record Highs After Services Data

U.S. stocks fell, after the Standard & Poor’s 500 Index climbed to a record high last week, even as data showed service industries grew at a faster pace in July. The S&P 500 slipped 0.2 percent to 1,706.77 at 10:09 a.m. in New York. The S&P 500 is trading at 15.5 times estimated earnings, compared with an average of 13.9 over the last five years, data compiled by Bloomberg showed.


Gold Bulls Cut Wagers on Signs U.S. Growth Quickens: Commodities

Hedge funds lowered bullish gold bets for the first time in five weeks as signs of accelerating U.S. growth contributed to the longest retreat in prices in a month. Gold futures declined 0.9 percent last week, the first drop since the week ended July 5.

WTI Crude Falls for Second Day After Libya Reopens Port

West Texas Intermediate crude fell for a second day after Libya reopened a terminal closed by protests. Futures dropped as much as 1.2 percent as Libyan officials said the Marsa el Hrega port was operating and all oil fields in Libya’s western region returned to normal. WTI crude for September delivery declined 92 cents, or 0.9 percent, to $106.02 a barrel at 9:40 a.m. on the New York Mercantile Exchange. Libya, holder of Africa’s largest crude reserves, is currently pumping 700,000 barrels a day, which should rise to 800,000 barrels next month.



Copper Falls as Chinese Service Stagnation Fuels Demand Concern

Copper fell in New York after three sessions of gains as a stagnant index of service industries in China stoked concern about the outlook for demand in the world’s largest consumer of the metal. Copper for delivery in September slid 0.6 percent to $3.153 a pound by 7:51 a.m. on the Comex in New York. Copper for delivery in three months fell 0.6 percent to $6,962 a metric ton on the London Metal Exchange. Copper stockpiles monitored by the LME fell for a 14th session to 606,900 tons, daily exchange figures showed. Orders to remove the metal from warehouses rose 2.3 percent, the most since June 27, to 324,300 tons.

Aluminum, zinc and nickel slid in London. Lead and tin rose.

Weak US$ at 15-month low pushes gold to new high

Published: Tuesday November 10, 2009 MYT 8:01:00
Weak US$ at 15-month low pushes gold to new high

NEW YORK:

Gold prices climbed to another new high Monday as the U.S. dollar sank to a 15-month low.
Gold for December delivery soared as high as US$1,111.70 on the New York Mercantile Exchange before settling at $1,101.40 an ounce, up $5.70, or 0.5 percent.

The gains came as the ICE Futures US dollar index, which measures the dollar against other currencies, dropped more than 1 percent to its lowest level since August 2008. The dollar weakened after finance ministers from the Group of 20 countries pledged over the weekend to maintain their stimulus efforts and keep interest rates low to further a global economic recovery. The G-20 leaders did not address how they might support currencies that have fallen in response to low rates. U.S. rates are near zero, which has contributed to the dollar's decline.
Gold, meanwhile, is seen as a hedge against the weak dollar and inflation, which investors fear could become a problem down the road if the greenback keeps falling.

"Short-term traders are looking at gold as an inverse play on the dollar," said Nicholas Brooks, head of research and investment strategy at ETF Securities in London.

Other commodities that are bought and sold in dollars have benefited from the greenback's slide because foreign investors can buy more with less money.

In other Nymex trading, December silver rose 10.5 cents to $17.48 an ounce, while December platinum rose $19 to $1,364 an ounce.
December copper futures added 1.5 cents to $2.9675 a pound.

In addition to the weaker dollar, jitters over tropical storm Ida helped support higher energy prices Monday. However, forecasters say the storm will likely weaken and bypass most drilling platforms and refineries in the Gulf of Mexico.

Light, sweet crude for December delivery rose $2 to settle at $79.43 a barrel.
Heating oil futures rose 5.92 cents to $2.0627 a gallon and gasoline futures gained 5.75 cents to $1.9818 a gallon.

Grain prices surged on the Chicago Board of Trade.
December wheat futures jumped 22.75 cents to $5.20 a bushel, while corn for December delivery rose 19 cents to $3.86 a bushel.
January soybeans gained 17 cents to $9.72 a bushel.

Prices for cotton, coffee and orange juice also rose.
- AP

Gold Prices Fall, Retreating From $1,000

Sept. 9 (Bloomberg) -- Gold fell from more than $1,000 an ounce as some investors sold the metal after the price climbed to an 18-month high yesterday. Silver also slipped.

Bullion futures reached $1,009.70 an ounce yesterday, the most since March 2008, as the dollar dropped 0.9 percent against a basket of six major currencies. Today, the dollar sank as much as 0.8 percent against the euro, falling to a 2009 low, and gold futures touched $1,005 before erasing gains. Gold tends to rise when the U.S. currency weakens.

“An expected period of profit-taking pushed gold back from its high,” Mark O’Byrne, a director at broker GoldCore Ltd. in Dublin, said in a note. “A very good indicator of gold’s sustainability has been visible today as it has constantly tested the $1,000 an ounce level. Investors are buying because they are worried regarding property and stock markets.”

Gold futures for December delivery fell $2.70, or 0.3 percent, to $997.10 an ounce on the New York Mercantile Exchange’s Comex division. The metal reached a record $1,033.90 on March 17, 2008.

“It seems inevitable that the near-infinite supply of paper and electronic money will fall in value versus the finite currency that is gold,” O’Byrne said in the note. “Increasing concerns regarding the sustainability of the global recovery and about the outlook for inflation should see gold continue to rise.”

Spot Price Eases

In London, bullion for immediate delivery slipped $1.63, or 0.2 percent, to $993.78 an ounce at 6:56 p.m. local time. London spot prices reached an all-time high of $1,032.70 an ounce on March 17, 2008.

Gold may resume its September rally, which boosted the price 4.9 percent through yesterday, should the dollar continue to decline, analysts said. Before today, the dollar sank 1.1 percent this month against the six-currency basket.

“The dollar remains the key factor determining gold’s direction,” Pradeep Unni, a Richcomm Global Services analyst in Dubai, said in a report. “If the dollar continues to be pressured by investors selling it to buy riskier assets, bullion could extend gains. If gold can keep above $1,000 this week, it may pave the way for a test of the record.”

The dollar may “rebound on any positive economic news,” Miguel Perez-Santalla, a Heraeus Precious Metals Management sales vice president in New York, said in a note.
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