NEW YORK, Aug 4 — Gold extended losses into a second day and crude oil remained below US$50 (RM192.84) a barrel amid concern over slackening demand for commodities and the outlook for US interest rates.
Asian energy and mining stocks fell, while Australia’s dollar dropped before a monetary policy review.
Bullion lost 0.3 per cent to US$1,083.85 an ounce by 9:55am in Tokyo, as palladium slid to a 13-year low and platinum sank 1.2 per cent.
Copper also retreated, falling a fourth day with Brent oil at US$49.90 following yesterday’s 5.2 per cent tumble.
While its energy and materials industry groups fell at least 0.3 per cent, the MSCI Asia Pacific Index fluctuated as Japanese shares pared back declines. The Aussie hovered near its weakest level since 2009 and Korea’s won resumed its downward move.
Angst over China’s slowing economy and concern over supply gluts in oil to industrial metals have reverberated through the market, with the ascendant dollar also helping send commodities to their lowest level in 13 years. Meanwhile, investors are scrutinizing US data for clues to the timing of the first rate increase since 2006. China imposed limits on equity short selling after local markets closed yesterday, the regulator’s latest salvo aimed at quelling equity volatility.
“Renewed Chinese growth concern is driving commodities and stock prices lower,” Matthew Sherwood, head of investment strategy at Perpetual Ltd, which manages the equivalent of US$24 billion, wrote in an e-mail to clients.
“With earnings season concluding this week all eyes are likely to look back at the clouded macro picture where China and Greece remain problematic and the US Fed is likely to remain at the forefront of investors’ concerns.” — Reuters
