Gold Higher, Other Commodities Mostly Lower as Market Calms from Korean Attack

By Staff,

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A short fire-fight between North and South Korea overnight briefly sent gold futures sharply higher but prices for the yellow metal are stablizing as the conflict appears to be contained and the U.S. dollar picked up strength against other currencies.

Gold had been sliding since the end of Monday's floor session, hitting a low of $1358 an ounce around midnight before jumping nearly $12 as initial reports of the skirmish on the Korean peninsula broke. The rise stalled, however, with front-end contracts soon easing to around $1364 and establishing a new floor around $1362 an ounce this morning. Silver and platinum are lower. Copper also is down.

Mining stocks are largely lower in early Tuesday pre-trade, although gold producer RandGold Resources Ltd. ( GOLD ) is up 0.06 to $97.55, following the price of bullion. Diversified miners such as Rio Tinto ( RIO ), the world's third largest mining company, and sector leader BHP Billiton Ltd. ( BHP ) both down about 2.5% this morning.

Energy futures are edging lower, with NYMEX crude oil giving up about 0.50 to reach 81.22 a barrel in recent trade. Oil is now down about 8% from its recent peak nearly and two weeks ago and market watchers were saying that crude prices are being influenced by concerns that debt problems in the Euro-Zone will slow economic growth, limiting demand, with perceptions of ample supplies in the U.S. also keeping a lid on prices.

Brent crude for January delivery was down about 0.63 from Monday's settlement to $83.44 a barrel this morning on the London-based ICE Futures Europe exchange. NYMEX natural gas is lower. Ethanol contracts have yet to move from Monday's $2.08 a gallon settlement.

Agriculture futures are mixed this morning, with corn and soybeans up while wheat is down.

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: BHP , GOLD , RIO

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