• Gold futures tumbled on the speculation that
China will raise interest rates to curb the raising
inflation, eroded the demand for commodities.
Silver also declined following gold.
• The dollar index rose to five week high against a
basket of six currencies, as the euro declined to
six week low.
• The gold price fell 2.3 percent this week. The
metal has gained 25 percent in 2010.
• If the inverse correlation between the dollar
and gold strengthens, we can see the dollar
weigh on gold again.
• Silver futures for December delivery fell
$1.463, or 5.3 percent, to settle at $25.942 an
ounce. On Nov. 9, the price reached $29.34,
the highest level since March 1980. The metal
dropped 3 percent this week. The commodity
jumped 54 percent this year.
• Copper tumbled the most in four months in New
York and fell from a record in London on concern
that China’s bid to rein in inflation will cool
demand for industrial metals.
• The greenback headed for five weekly high on the
decline of euro.
• Copper has gained more than fivefold since 2002
as robust growth in emerging economies boosted
demand for the metal used in buildings and
Base metals (Contd)
• Raising rates has a negative psychological
impact and will put a brake on the rising
• additional sales from reserves of raw materials
would slash demand
• Oil fell the most in more than three weeks on
speculation China will raise interest rates,
curbing demand growth in the world’s biggest
• Anything that provides evidence of a slowing
Chinese economy is likely to be decline the
• Crude oil for December delivery fell $2.93 to
settle at $84.88 a barrel on the New York
Mercantile Exchange. Futures, dropped 2.3
percent this week, leaving them up 10 percent
from a year ago.