Crude oil
Oil futures were mostly flat on Monday after Friday’s sharp increase. Traders wait for extra signals on the economy recovery pace.
On the NYMEX, light sweet crude futures for November delivery were up 3 cents, to $76.52 a barrel. Brent futures declined 30 cents, to settle at $78.57 a barrel.
Oil futures finished last week at the highest level since September 13, with brighter views on the global economy giving the hope for rising demand for crude oil. After Friday's rally, however, investors have been wary of pushing crude higher without more solid evidence that demand will improve in front of the face of a glut of oil supplies.
Analysts said data due later this week on the U.S. GDP, auto sales and manufacturing sector, as well as the weekly report on oil inventories, could provide clearer direction for crude futures.
Rising stock indices, comments from the Federal Reserve System suggesting that it will support the economy and a weakening of the U.S. dollar have sustained oil futures advance.
However, the U.S. oil and fuel products stockpiles remain near 27-year highs, restraining any oil price growth as well. The high supplies, combined with questions about future demand growth, have kept crude futures in a narrow range between roughly $60 and $70 a barrel even as equities have advanced in September.
Rallies toward the high end of oil's recent trading range have made investors to sell in order to fixate profits. On Friday, the Commodity Futures Trading Commission said that money managers, including hedge funds, cut their net long position in NYMEX crude oil futures by 15% in the week ended September 21. The change came in the week right after crude's run above $77 a barrel.
Gold
Gold futures showed a slight move higher to a new record high on Monday. It was due to keeping popularity of precious metals amid expectations for further stimulus in the USA and concerns about sovereign finance of Europe.
According to session’s results, December gold futures rose 50 US cents, to $1298.60 a troy ounce. It became the eighth record close level in the last 10 sessions. Intraday high did not exceed Friday’s all-time peak of $1301.60 an ounce.
Gold's most recent apex has come after the Federal Reserve information last week that further government bond purchases may be on the horizon. The central bank's statement was interpreted as a signal for more easing of monetary policy. Further asset purchases by the Fed would likely devalue the greenback, which would be supportive for dollar-denominated gold.
Gold is also often considered a safe-haven asset because it is not as linked to economic cycles like other commodities or equities.
Performed by Vladimir Donin, Analytical expert
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