SH: Commodities Gold strikes record high, oil eases
LONDON (SHARECAST) - Crude oil prices fell on Tuesday, after a volatile session, as profit takers moved in and as traders sought the safety of gold.
The October contract settled 39 cents lower at $76.80a barrel on the New York Mercantile Exchange. Earlier in the session crude touched a high of $78 a barrel.
Data showing a stronger than expected increase in business inventories in July lifted oil prices mid session. The Commerce Department reported a 1% rise rather than the 0.7% rise predicted.
US retail sales also brightened the economic outlook. Sales rose a better than expected 0.4% in August following strength in food, clothing and gasoline sales, according to government figures.
However as the Dow’s gains started to sputter and investors digested disappointing economic data from Europe, oil traders turned direction and sent prices lower.
EU industrial productionwas flat in July, despite forecasts of a slight increase. A separate survey on German investor confidence also came in weaker than hoped for.
Worries about the global economy and the weaker dollar pushed gold to a record high. Gold for December delivery rose $24.60 to a record close of $1,271.70 an ounce on the Comex division of the New York Mercantile Exchange.
Traders piled out of the dollar and sought the relative safety of the yellow metal.
Precious metals enjoyed a broad rally with silver for December up 28 cents to $20.43 an ounce while platinum for October delivery added $44.50 to $1,594.40 an ounce.
