Metals Slide Down, Oil Rises after US Manufacturing News
Aug, 04th 03:32
Gold fell and copper neared a bear market amid concern over slackening demand for commodities and as the U.S. interest-rate outlook buoyed the dollar. China’s stocks fluctuated after authorities stepped up efforts to halt a rout.
Bullion lost 0.3 percent as of 11:08 a.m. in Tokyo, while palladium slid to its lowest since 2012. Copper extended losses and Brent crude traded below $50 a barrel. A gauge of the greenback’s strength climbed to the highest level since March, while Australia’s dollar traded near a six-year low before a monetary policy review. The MSCI Asia Pacific Index of shares fell 0.1 percent and the Shanghai Composite was down 0.4 percent, after climbing as much as 1.1 percent.
Palladium fell as much as 1.5 percent, while platinum lost 1.4 percent. Copper fell 0.5 percent to $5,195 a metric ton in London, after touching a fresh six-year low on Monday.
Brent rose 0.7 percent to $49.88 a barrel, after a 5.2 percent slide to its lowest settlement price since January. West Texas Intermediate crude added 0.6 percent to $45.46 a barrel following a 4.1 percent drop. Comments from Iran’s oil minister ignited the oil rout Monday, with the country pledging an almost immediate increase in output once international sanctions are eased.
The Aussie rose 0.1 percent to 72.95 U.S. cents after retreating 0.3 percent on Monday. The currency slid to 72.35 cents July 31, its weakest intraday level since 2009. Australia is expected to hold key borrowing costs at a record low Tuesday as waning Chinese demand hits the resource-driven economy.
The Institute for Supply Management’s manufacturing index slid from a five-month high Monday, fueling concern that without stronger overseas markets and a rebound in business investment, acceleration in factory output may prove difficult to achieve.