12th September 2011
The industrial metal and oil markets have weakened today (September) amid growing concerns of European economic instability.
This morning's commodities trading reflected the uncertain economic outlook, with the ICE Brent October contract traded down $1.44 a barrel at $111.33, while gold fell by 0.82 per cent to $1,841.94 a troy ounce, as global supply concerns and the strength of the dollar's "haven rally" impacted on the respective markets.
Edel Tully, precious metals strategist at UBS, commented: "While gold is capable of rallying in the face of a strong dollar, an extended upward move in the dollar does put some obstacles in its path."
The dollar remains at a seven-year high against the euro and this has led to caution in the bullion sector.
However, gold remains up by 30 per cent this year, comfortably out-performing global stocks and other commodities. Gold touched a record $1,921.15 an ounce on September 6th.
Posted by Andrew Cottrill
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