The talk of the day among economists and media observers is “stimuli.” All ask for stimuli and many promise stimulus.
It seems the latest stimulus speculations already work out for commodities, because oil is advancing for fourth day. Copper rose for second day. Gold is also steady rising as optimism for further stimulus weakens dollar.
Oil advances a fourth day on stimulus speculation, Iran Tension
Oil advanced for a fourth day in New York as policy makers in the U.S. and Europe indicated they may take steps to boost their economies and Iran signaled it will take a hard line in nuclear talks. Futures rose as much as 0.9 percent for the longest run of gains since April. Fed Vice Chairman Janet Yellen said the U.S. remains vulnerable to setbacks that may warrant additional monetary stimulus.
Copper Buyers Balk as Europe Crisis Unfolds, Top Producer Says
Codelco, the world’s largest copper producer, said buyers are delaying metal purchases amid concern that Europe’s debt crisis will slow global growth. Declining prices, including a 12 percent slump last month, reflect global demand that is falling short of Codelco’s estimated 3 to 3.5 percent annual growth rate, said Thomas Keller, the state-owned company’s chief executive officer. “Everybody is more cautious about making investments in copper; Copper gained for a second day as industrial metals advanced on speculation policy makers will take steps to revive the slowing global economy. Three-month copper climbed as much as 0.9 percent to $7,473.50 a metric ton on the LME , before trading at $7,462.75 at 10:03 a.m. Shanghai time. The contract gained as much as 1.6 percent yesterday, the most since May 21.
Gold May Advance as Optimism for Further Stimulus Weakens Dollar
Gold may gain on speculation Federal Reserve Chairman Ben S. Bernanke will signal that more stimulus is needed, weakening the dollar and increasing demand for alternative investments. Futures retreated from a one-month high.
Comex gold futures prices ended the U.S. day session solidly higher hit a four-week high Wednesday. The yellow metal was boosted by fresh technical buying and by a “risk-on” trading day in the market place, which boosted most raw commodity markets, including the precious metals. August gold last traded up $13.80 at $1,630.70 an ounce. Spot gold was last quoted up $12.30 an ounce at $1,629.75. July Comex silver last traded up $1.135 at $29.535 an ounce.