Commodities: Oil and gold down again after China downgrade
Tue 09 Oct 2012
LONDON (SHARECAST) - Crude oil futures fell on Monday, for a second day running, as investors fret about China's downgrade and as markets await any sign that Spain is ready to ask for a bailout.
Crude for November delivery settled down 55 cents or 0.6% at $89.33 a barrel on the New York Mercantile Exchange.
Concern about deteriorating demand from China was sparked after the World Bank cut its 2012 growth estimate for China from 8.2% to 7.7% citing concern about weak export demand and investment growth. The World Bank also warned that China's slowdown could last longer than previously thought.
Elsewhere in Europe, Eurozone finance ministers met in Luxembourg on Monday with Spain and Greece at the heart of talks. German Finance Minister Wolfgang Schauble reiterated that Spain does not need a bailout.
Meanwhile the spread between the US and European benchmark reached its widest level in a year. On the ICE Futures Europe exchange Brent crude fell 4 cents to $111.98 a barrel.
Among precious metals gold, like oil, was down again on Monday after China's downgrade hurt market confidence.
Gold for December delivery fell $5.10 to settle at $1,775.70 an ounce on the Comex division of the New York Mercantile Exchange.
Silver for December delivery dropped 55 cents to $34.02 an ounce while December copper futures lost 6 cents to close at $3.72 a pound.
January platinum declined $8.40 to $1,698.80 an ounce and palladium for December reduced $6.25 to $656.95 an ounce.