Commodities End Lower as Gold, Oil Futures Decline on Profit Taking, Economic Worries


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Commodities ended trading lower with both gold and crude oil futures down on worries that the global economy and profit-taking.

Crude oil for June delivery was down $1.25, or 1.7%, to $74.40 a barrel on the New York Mercantile Exchange. In other energy futures, heating oil was down 1.27%, or $0.03, to $2.13 a gallon while natural gas was up 1.35%, or $0.06, to $4.34 per million British thermal units.

Meanwhile, gold for June delivery was off $13.90, or 1.1%, to settle at $1,229.20 an ounce. In other metal futures, copper was up 1.5%, or $0.05, to $3.23 a pound while, silver was down 0.7%, or $0.14, to $19.53 a troy ounce.

Gold inched to a new record earlier in the day, but a combination of profit-taking from investors and a rising dollar managed to keep a lid on further gains by the precious metal.

Crude suffered throughout the day on continued fears that the global economy was set to slow down, which would cut the demand for oil going forward. Also, there were lingering worries about crude inventories, which have been rising in recent weeks.

In commodities stocks, Allied Nevada Gold Corp. ( ANV ) moved lower after the gold producer said it will sell 13 million shares priced at $21 each.

Allied Nevada shares were down $1.34, or 6.16%, to $20.41.

In precious metal ETF trading, the SPDR Gold Trust ( GLD ) was down $0.75, or 0.62%, to $120.65 while the Market Vectors Gold Miners ETF was down 1.05%, or $0.56, to $52.87. The iShares Silver Trust ( SLV ) was down 0.04%, or $0.01, to $19.11.

In energy stocks, BP plc ( BP ) shifted its estimated cleanup costs for the Gulf of Mexico spill to $450 million after the company released video from the seabed that showed oil spewing from an uncapped well a mile deep, MarketWatch reported.

BP shares were down 0.12%, or $0.06, to $48.56.

Meanwhile, Boeing ( BA ) and Exxon Mobil Corp. ( XOM ) are pushing to halt tighter sanctions against Iran, which business groups say will cost approximately $25 billion in exports, Bloomberg reported.

Exxon Mobil shares are up $0.18, or 0.28%, to $65.09.

In other commodities, hog futures were down on speculation that high pork prices will slow purchases by grocers. Hog futures for June declined $0.008, or 0.9%, to $0.85 cents a pound at the Chicago Mercantile Exchange.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: ANV , BA , BP , GLD , SLV , XOM

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