Oil prices and gold prices began to play hide and seek

Gold beats oil prices

In brief: Oil prices rose slightly, but the general rise in prices this month is much higher in gold. Gold prices may reach $ 1300 by the end of summer.

Gold prices were more stable than oil prices. Quotes of the oil market on Thursday, May 27 closed a record increase in prices to a two-week peak against the more optimistic investors in the global recovery. On the New York Stock Exchange New York Mercantile Exchange price of July futures for petroleum of mark Light Sweet rose by 3.04, or 4.3%, and its price was 74.55 dollars per barrel. At the exchange InterContinental Exchange Futures Europe in London, Brent crude futures price rose 2.92, or 4.1%, to 74.66 dollars per barrel.

On Thursday, May 27 quotes on the market of “black gold” closed record growth rates up to two weeks maximum under the influence of the following factors: 1 – economic news – the market participants on Thursday focused on the prospects for world economic growth, which remain favorable, what prompted them to invest in risky assets – oil. The main reasons for this were: 1 – the fact that China has expressed confidence in the European debt 2 – the Spanish government approved the budget cuts, raising investors’ confidence in the fact that high levels of debt to Spain did not have a negative impact on the economy of the region. Investors are beginning to forget the worries about debt problems in Europe against the background of incoming recent evidence of a confident reconstruction of the U.S. economy and continued high growth in China; 2 – positive dynamics of the stock exchanges, where the major U.S. stock indexes closed in the red zone against a background of economic statistics and news, also supported oil futures (Dow Jones industrial average – 10258.99 (+284.54, or +2.85%), Nasdaq Composite – 2277.68 (+81.80 or +3.73%), S & P 500 – 1103.06 (+35.11, or +3.29%)); 3 – the fall of the dollar on the Forex market to a basket of world currencies significantly increase the appeal of commodities – petroleum – for investors (oil prices tend to move in the opposite direction from the U.S. dollar as falling U.S. currency makes oil cheaper for holders of other currencies), which served as additional positive impetus to the oil market.

From the news it is worth noting the message that the coast of Singapore as a result of the collision of the tanker with cargo vessel spilled into the sea nearly 15 thousand barrels of oil. Clash of the tanker and cargo ship Bunga Kelana Waily happened in Singapore Gulf about 13 kilometers from the coast. In the left side of the tanker – a hole 10 meters long. The tanker is registered in Malaysia, the cargo ship goes under the flag of Saint Vincent and the Grenadines. We both ships were at anchor in Singapore Gulf. The work on the oil recovery and clean-up area. On the casualties among the crew were reported. Vessel traffic in the strait is not violated. Singapore is one of the busiest sea routes in the world, which connects the Pacific and Indian oceans. As it should be a large number of tankers with oil in the Middle East. Several analysts point to the fact that oil prices back into the trading range of 70-90 dollars per barrel, that may reassure the market and continue to serve as a starting point for growth. The close relationship between oil prices and the rate of the U.S. dollar is expected to continue to set the tone for trading on the oil market. Many analysts expect “extremely difficult environment for trade in the future, prices will fluctuate within the area of 70-90 dollars per barrel for a long time in coming months in response to the intraday changes in the stock and currency markets and the situation in the euro zone, possibly will have a secondary effect.

Ukrainian Globalist
2010-05-28 12:17, Commodities.

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3 comments к “Oil prices and gold prices began to play hide and seek”

  1. Md jamal Says:

    May I know today is gold price how much is per gram? Thanks.

  2. Dascia Says:

    The price per gram (gold) is about $37

  3. Gold Coins Says:

    Gold is really a good investment. What do you think?

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