Commodities: Gold Leads Metals Lower; Oil Near $86.50 a Barrel

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Commodities futures are mostly lower this morning with crude oil down another $1.36 to $86.51 a barrel after falling $1.24 on Monday.

Gold futures also are lower today, more than giving back yesterday's small gains. Copper and silver are down too.

Commodities have been trending lower during much of January as stock prices climb along with rising confidence in an economic recovery taking away their appeal as an asset class. Gold, in particular, has been under increased selling pressure with the most heavily traded February contract on the Comex in New York now down more than $100 an ounce since hitting $1,432 an ounce on Dec. 8. At last look, the yellow metal was down $18.50 to $1,326 an ounce. Silver is off $0.586 to $26.735 an ounce.

Crude fell yesterday after Saudi Arabian Oil Minister Ali al-Naimi signaled OPEC may bolster production and maintain spare capacity to meet rising fuel demand. Brent crude also is down this morning, giving up 1.2% to $95.45 a barrel.

In company news, Hercules Offshore ( HERO ) said it will invest $10 mln in Discovery Offshore S.A., which is building two ultra high-specification jackup rigs -- with options for two more -- at Keppel FELS in Singapore. Hercules Offshore also signed a construction management contract for the project and receive undisclosed payments for overseeing rigs operated by Discovery.

Toronto Stock Exchange officials have delayed a decision on a shareholders' rights plan by Niocan Inc (NIO.TO) as the rare-earths miner weighs alternative buyout proposals. The company adopted the plan last Friday in response to offers from Augyva Mining Resources Inc (AUV.V) and Nio-Metals Holdings LLC, its largest shareholder. The rights plan remain in effect, the firm said, despite the TSX deferring a review.

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) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

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