Diminished dollar standings cause a climb in U.S. crude prices: A Summary of the Market
Precious metals have profited from an increase in consumer interest, with gold increasing 1%. The raise comes after two days of declining for the metal and has buyer interest grow along with it. The metal commodity’s rise has also been bolstered by the value increase in crude oil.
Base metals have seen a much less dramatic rise in value, as copper prices’ increase posted only a slight profit. The fluctuations are likely caused by the increasingly worrisome debt situation in Europe. Chilean Codelco, the world’s number one copper producer has turned out more than 818,000 tons of the metal commodity in the first six months of 2011. This shows a 2.4% raise from the production rates of the same period last year. Aluminum prices have also seen a slight increase, brought forth by Russia’s RUSAL fielding China’s exponentially increasing demand for the metal.
Bolstered by a weakened dollar and despite several reports from the International Energy Agency that predicted a decreased demand for the oil commodity, crude oil prices rose in the U.S. The Agency’s forecast announced a 160,000 barrel a day drop in demand for the product, bringing its overall numbers to 1.04 million barrels per day. Its 2012 predictions have so far been equally grim. Crude oil stocks have seen a slight drop after the dust settled from the settlement trade.
As far as currency, the yen has increased against the weakened states of the euro and the dollar. Investors have long since been flocking to the currency, since its steady rise has created a safe haven for all who are worried about protecting their money. With the Swiss franc on a downturn after the country’s National Bank campaigns, and the euro still reeling from the underwhelming Italian bonds auctions. No Franco-German or Greek upswings on the horizon are also contributing to the problem; the yen looks like it will remain an investor safe haven for the time to come.