MK: Over $110 the price of Crude – New record for the price of Gold
The level of $110 a barrel is fact as the price of Crude broke this level for the first time in 2.5 years, due to the ongoing turbulence in Libya and other Middle East countries as well as due to the positive signs of economic recovery in the U.S. Furthermore, the forthcoming elections in Nigeria added in the concerns that there will be a new problem in oil supply as the last elections had affected the production. The country covers about 7% of the consumption in the U.S.
Specifically, the contract price of crude of light sweet type of May delivery increased by $1.47, or 1.4%, and closed at $110.30 a barrel on the Commodity Exchange in New York. This is the highest level since September 2008. The type of crude oil of Brent type increased by 39 cents or 0.3% to $122.69 a barrel on the ICE in London.
The traders attributed the current rise of Crude price primarily to the news of the destruction of significant oil field in Libya. Some estimate also that the contract at Nymex went above technical levels of trade which triggered the buying surge that led the price above $110.
Now on the metals front, the price of gold recorded a marginal increase on Thursday’s trading but this was enough however for the price to achieve a new record – for the third consecutive meeting – as it closed over $1,459. Specifically, the contract price of gold of June delivery increased by 80 cents and closed at $1,459.30 per ounce on the Commodity Exchange in New York.
The buying momentum, the renewed concerns about the debt problems of Europe, the fear of inflation, and the powerful earthquake that struck once more Japan pushed the yellow metal higher defying analysts’ expectations of liquidations.
The price of silver followed gold’s upward momentum and closed with 16 cents profit to $39.55 per ounce near to the psychological threshold of $40 per ounce. In other metals, copper of May delivery increased by 5 cents or 1.1% to $4.42 a pound. July’s platinum fell by $7.20 or 0.4% to $1,790.60 an ounce while June palladium declined by $4.35 or 0.6% at $ 780.25 per ounce.
