Spot gold slipped to $831an ounce as firmer dollar typically weighed on it. Traders are now awaiting fresh moves from governments and central banks to address the credit crisis and stabilise the volatile financial markets and watching for the next move by authorities to unlock liquidity. News which may provide some support to the yellow metal is that the biggest mine owned by Gold Fields remained shut for a second day on today after it was hit by earth tremors the previous day, and a worker who had trapped underground by falling rock was found dead.
Crude Oil tumbled more than $3 to $71.52 a barrel on Thursday, as commodity investors covered their short position on fears that a global recession would slash energy demand. The fall in crude futures prices today reflects movement in the stock market, which mirrors fears about a potential recession that will cut into demand for crude oil. Gasoline and heating oil futures also extended losses, also under pressure as weekly inventory data due out today which are forecasted to show that crude and refined product inventories rose last week. OPEC cut its forecast for world demand for its crude in 2009 ahead of a
November meeting where the group is expected to consider output cuts. U.S. weekly oil inventory data to be released later on Thursday is expected to show crude oil stocks rose for the third straight week, gaining 1.9 million barrels, while distillate and gasoline stocks also increased following weak demand, a Reuters poll showed.
Base metals tumbled in morning trade. Copper dropped as much as 8 percent to a 33-month low, and other industrial metals also fell on demand concerns amid mounting fears of a global economic slowdown but later recovered as Workers at Chile's top mining port Antofagasta stayed off the job for a second day on Thursday, vowing to strike indefinitely until their demands for higher wages and improved working conditions are met. A U.S. Fed warning stated that U.S. economy still faces significant threats and bleak U.S economic data led Wall Street to its worst day since the 1987 stock market crash. Lead dropped as much as 7.9 percent to a low of $1,396 a tonne from $1,515 on demand worries whereas nickel slid by almost 6 percent to $11,250 per tonne.
