Commodities markets summary

Reported by AAP
Monday, August 3, 2015
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A summary of trading in key commodities markets overseas:

ENERGY

Oil prices have plummeted as traders digested the latest OPEC signal that crude production would not be cut despite global oversupply and falling prices.

US benchmark West Texas Intermediate (WTI) for September delivery dived almost 3.0 per cent, shedding $US1.40 to close at $US47.52 a barrel on the New York Mercantile Exchange.

Brent North Sea crude for September dropped $US1.10 (2.1 per cent) to settle at $US52.21 a barrel in London trade.

Both contracts had tumbled on Thursday, snapping two consecutive days of gains.

On Friday, the WTI futures contract clocked a fifth straight week of decline and was heading closer to its lowest level in six years, following an attempt at stabilisation around $US60 a barrel in the spring.

PRECIOUS METALS

Gold has reversed earlier losses as the dollar US fell after weaker-than-expected US data, but prices remain on course for their biggest monthly decline in more than two years on expectations the Federal Reserve will soon raise interest rates.

A US government index on employment costs rose less than forecast.

Spot gold, lower initially, rose as much as 1.4 per cent to a session high of $US1,103.13 an ounce, before trading up 0.8 per cent at $US1,095.80 by 2.34 pm EDT (0434 Saturday AEST).

US gold for August delivery climbed 0.6 per cent to settle at $US1,094.90 an ounce.

Spot silver was up 0.7 per cent at $US14.75 an ounce.

Spot platinum fell 0.4 per cent to $US982.25 an ounce and palladium dropped 1.2 per cent to $US611 an ounce.

BASE METALS

Copper prices have fallen on persistent worries about demand in top consumer China, but losses are muted after weak US data prompted a slide in the US dollar.

Three-month copper on the London Metal Exchange closed down 0.6 per cent at $US5,230 tonne, after sliding as much as one per cent in the morning and then bouncing briefly into positive territory following the US data.

Aluminium ended 1.5 per cent lower at $US1,618 a tonne, the weakest in six years, amid oversupply.

Zinc slid 1.8 per cent to finish at $US1,916 a tonne while lead fell 0.6 per cent to $US1,702.

But nickel gained 0.2 per cent to $US11,045 a tonne and tin closed up 0.7 per cent at $US16,300 a tonne.

03/08/2015 08:27Sydney, Australia. 3 August,2015
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