Commodities finished higher Wednesday after market responds to a
monetary policy statement from the Federal Reserve regarding
Gold for June delivery added $9.60, or 0.8%, to close at
$1,171.80 an ounce on Comex. In other metals, silver futures lost
ground, falling 0.19%, or $0.03, to $18.11 while copper futures
rose 0.41%, or $1.40, to $339.65.
Meanwhile, crude oil for June delivery, the most active
contract, gained $0.78, or 1%, to $83.22 a barrel on Comex. In
other energy futures, heating oil was down 0.13%, or $0.03, to
$2.22 per gallon while natural gas was up 1.57%, or $0.07, to $4.28
per million British thermal units.
Commodities were influence by continuing concerns over the debt
situation in Europe as Standard & Poors lowered the rating on
Spain's debt and Germany's requirement that a bailout would have to
come with strings attached.
Also, the Energy Information Administration reported that U.S.
commercial crude oil inventories rose by 1.9 million barrels from
the previous week. U.S. stockpiles, which stand at 357.8 million
barrels, are over the upper limit of the average range for this
time of year. Analysts expected crude oil inventories to rise by
1.4 billion barrels.
Precious metal ETFs were mixed. The Market Vectors Gold Miners
) was up 3.80%, or $1.84, to $50.12 while the SPDR Gold Trust (
) was down 0.31%, or $0.35, to $114.28. Shares of iShares Silver
Trust ETF were down 0.67%, or $0.12, to $17.76.
Shares of Exxon Mobil (
) were up in afternoon trading ahead of the company's earnings
report, which is due before the market opens on Thursday. Analysts
are looking for Exxon Mobil to report $1.41 a share on $96 billion
in revenue. Exxon Mobile shares are up $1.14, or 1.67%, to $69.41
in afternoon trading.
Sempra Energy (
) said it settled a legal dispute with the state of California for
$410 million in case linked to the energy crisis that hit the state
in 2000 to 2001. Sempra shares are up 0.41%, or $0.20, to
Also Wednesday, ConocoPhillips (
) is withdrawing from a multibillion dollar joint venture to
develop a gas field in Abu Dhabi, the Financial Times reported.
ConocoPhillips shares are up 2.12%, or $1.22, to $58.76.
In other commodities, coffee rose to the highest price in two
weeks on a weaker dollar, which raises the appeal of most
commodities. Arabica coffee for July delivery rose $0.02, or 1.8%,
to $1.33 a pound on ICE Futures U.S., according to Bloomberg.