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17 Sep 2013
Commodities heading downwards as Syria tensions are probably over
FXstreet.com (Athens)- Both Crude and Brent Oil headed south on Monday’s trading session mostly due to the easing on Syria worries and despite the sharp selloff of the greenback.
Oil prices tumble as US and Russian officials reached a deal to strip Syria of chemical weapons
The dollar fell to a four-week low on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew his name as a candidate to lead the Federal Reserve. Summers is perceived by investors as relatively hawkish, and his withdrawal suggests there will be a more gradual approach to tightening monetary policy, which is a negative for the dollar. Therefore the greenback collapsed with the DXY reaching 80.968 (its lowest level since the 21st of August). However, despite the greenback’s sharp selloff on “Summers going on Summer vacations”, Global oil prices fell on Monday after U.S. and Russian officials reached a weekend deal to strip Syria of chemical weapons, easing investor worries. Also pressuring oil prices, Iran's new atomic energy chief said his country wants to settle a decade-old nuclear dispute with the West. Elaborating on, Brent crude for delivery in November fell by $1.63 to settle at $110.07 a barrel, paring losses after losing nearly $3 to hit $108.73, its weakest level since Aug. 12. What’s more, U.S. oil for October delivery fell by $1.62 a barrel to close at $106.59 after hitting a low of $106.10 earlier in the session. During the session the spread between the two benchmarks hit a low of $2.94, the smallest premium since Aug. 20.
Gold fell 1 percent on Monday after the bullion market failed maintain a rally set off by former Treasury Secretary Lawrence Summers decision to withdraw as a candidate to lead the U.S. Federal Reserve. Spot gold was down 1.1 percent at $1,312.09 an ounce, having earlier fallen by as much as 1.4 percent to $1,307.60.U.S. gold futures for December delivery settled up $9.20 at $1,317.80 an ounce, with trading volume about 10 percent below its 30-day average. Finally, the silver price fell 1.6 percent to $21.85.
Oil prices tumble as US and Russian officials reached a deal to strip Syria of chemical weapons
The dollar fell to a four-week low on Monday after former U.S. Treasury Secretary Lawrence Summers withdrew his name as a candidate to lead the Federal Reserve. Summers is perceived by investors as relatively hawkish, and his withdrawal suggests there will be a more gradual approach to tightening monetary policy, which is a negative for the dollar. Therefore the greenback collapsed with the DXY reaching 80.968 (its lowest level since the 21st of August). However, despite the greenback’s sharp selloff on “Summers going on Summer vacations”, Global oil prices fell on Monday after U.S. and Russian officials reached a weekend deal to strip Syria of chemical weapons, easing investor worries. Also pressuring oil prices, Iran's new atomic energy chief said his country wants to settle a decade-old nuclear dispute with the West. Elaborating on, Brent crude for delivery in November fell by $1.63 to settle at $110.07 a barrel, paring losses after losing nearly $3 to hit $108.73, its weakest level since Aug. 12. What’s more, U.S. oil for October delivery fell by $1.62 a barrel to close at $106.59 after hitting a low of $106.10 earlier in the session. During the session the spread between the two benchmarks hit a low of $2.94, the smallest premium since Aug. 20.
Gold fell 1 percent on Monday after the bullion market failed maintain a rally set off by former Treasury Secretary Lawrence Summers decision to withdraw as a candidate to lead the U.S. Federal Reserve. Spot gold was down 1.1 percent at $1,312.09 an ounce, having earlier fallen by as much as 1.4 percent to $1,307.60.U.S. gold futures for December delivery settled up $9.20 at $1,317.80 an ounce, with trading volume about 10 percent below its 30-day average. Finally, the silver price fell 1.6 percent to $21.85.