Written by Sumit Roy  |

September 18, 2012

Morning Call: Gold Holds At $1760; Oil, Copper Continue To Sell Off On Economic Growth Concerns

Details

Other than gold and silver, most commodities continue to see weakness.

Most commodities are lower for a second day, as renewed economic growth concerns offset positive sentiment generated from last week's QE3 announcement. In today's news, package delivery company FedEx cut its earnings outlook and said that the global economy is worsening.

The U.S. Dollar Index edged up for a second-straight session this week to trade at 79.15, up 0.17 percent.

• Gold was last trading down by $1.80, or 0.1 percent, to $1759.65, while silver added $0.06, or 0.1 percent, to $34.24.
  
  Platinum shed $7.50, or 0.45 percent, to $1658.25 and palladium lost $3.45, or 0.51 percent, to $677.80.
  
  "We are happy to stay bullish gold," Barclays Capital said in a note. "Our upside targets are at $1,791 and then $1,803. We also expect silver to extend gains toward our initial target near $35."
  Gold eases from 6-1/2 month high, tracking euro, stocks
  
  
• Crude oil is lower again today after plunging on Monday in a mysterious sell-off.  Brent was last trading down by $0.57, or 0.5 percent, to $113.22, while WTI lost $1.01, or 1.05 percent, to $95.61.
  
  "[Monday's] dramatic sell-off does not appear to have been driven by anything fundamental in the market. It looks as though it was triggered by computer trading system-type selling," said Tony Machacek, an oil futures broker at Jefferies Bache. "We've seen a steady increase in prices, so maybe the market was a bit overbought and susceptible to a long-liquidation move to the downside."
  Oil slips below $114, extending slide
  
  
• Natural gas was last trading down by $0.02, or 0.84 percent, to $2.84/mmbtu.
  
  "Though storage space fear has diminished, ample supplies, mild weather and a lack of shoulder month demand are still a drag on October [futures]," Gelber & Associates Senior Analyst Aaron Calder said.
  Natural Gas: Putting the Pedal to the Metal
  
  
• Harvest pressure continues to push prices for corn and soybeans lower.
  
  Corn was last trading down by $0.01, or 0.1 percent, to $7.47/bushel, while soybeans fell by $0.24, or 1.44 percent, to $16.45 and wheat gained $0.07, or 0.83 percent, to $8.85.
  Soybeans continue to slide, corn and wheat rebound
  
  
• Copper was last trading down by $0.04, or 0.97 percent, to $3.77/lb on Comex.
  
  "There was a lot of short covering, and it looks like that's run its course," Deutsche Bank Analyst Dan Brebner said. "The on-the-ground conditions remain quite poor and it seems in the U.S. at least that they are deteriorating, and concerns with respect to China remain very much in place."
  Copper falls for second day as stimulus rally deflates
  
  

What to Watch For:

4:30 p.m. ET: API Weekly Statistical Bulletin