Gold, oil slump on global economy fears
Friday, 21 March 2008
HONG KONG, March 20 (Reuters): Gold prices slumped more than 2 per cent to their lowest in a month and oil dropped as doubts about the global economy continued to unnerve commodity asset classes that had soared to record highs as early as this week.
Asian resource and mining stocks fell, while renewed credit crisis fears also dragged down indexes across the region just one day after investors had cheered hefty US interest rate cuts and resilient results from leading US investment banks.
Gold tumbled more than 2 per cent to as low as $920.30 an ounce, its lowest since Feb. 20., after prices had already slumped 6 per cent Wednesday in its biggest one-day per centage drop in nearly two years. Bullion last traded at $936.60.
That marked a severe retreat from a record $1,030.80 an ounce hit Monday, though prices are still up some 12 per cent so far this year.
Other metal prices from platinum to copper to silver also came under heavy pressure amid concerns that a US-led economic slowdown could undermine global demand.
Oil prices extended the prior day's slump into Asian trade as well, with US crude futures down 38 cents to $102.19 a barrel, retreating sharply from a record $111.80 hit Monday.
Commodity prices have soared this year as demand outpaced supply, while a slumping dollar also lifted prices as it makes purchases less expensive when done through other currencies.
"I think we will probably see further falls in commodity prices," said analyst Cai Luoyi at China International Futures.
The falls in commodity prices helped lift the dollar after initial weakness earlier in the session, with the U.S .currency reaching $1.5566 per euro up slightly from late US trade, and still off its recent record low against major currencies.
Asian resource and mining stocks fell, while renewed credit crisis fears also dragged down indexes across the region just one day after investors had cheered hefty US interest rate cuts and resilient results from leading US investment banks.
Gold tumbled more than 2 per cent to as low as $920.30 an ounce, its lowest since Feb. 20., after prices had already slumped 6 per cent Wednesday in its biggest one-day per centage drop in nearly two years. Bullion last traded at $936.60.
That marked a severe retreat from a record $1,030.80 an ounce hit Monday, though prices are still up some 12 per cent so far this year.
Other metal prices from platinum to copper to silver also came under heavy pressure amid concerns that a US-led economic slowdown could undermine global demand.
Oil prices extended the prior day's slump into Asian trade as well, with US crude futures down 38 cents to $102.19 a barrel, retreating sharply from a record $111.80 hit Monday.
Commodity prices have soared this year as demand outpaced supply, while a slumping dollar also lifted prices as it makes purchases less expensive when done through other currencies.
"I think we will probably see further falls in commodity prices," said analyst Cai Luoyi at China International Futures.
The falls in commodity prices helped lift the dollar after initial weakness earlier in the session, with the U.S .currency reaching $1.5566 per euro up slightly from late US trade, and still off its recent record low against major currencies.