Gold rises, oil falls and stock markets crash –August 18

The stock markets fell very sharply yesterday; the markets seem to consider the possibility of an imminent double dip recession in the US and Europe. Perhaps the recent US home sales report stimulated this reaction.  The last time this happen was a week ago when the whole S&P downgrading US credit rating issue happened. In any case, this market reaction has a domino like effect on major commodities with gold and silver prices rising and crude oil prices sharply falling.   Natural gas spot price (Henry Hub) didn’t change much and ended yesterday with a moderate rise to break a four business days’ consecutive drop.

Here is a summary of the price movements of precious metals and energy commodities for August 18th:

Precious Metals prices:

Gold price sharply increased yesterday by 1.57% to $1,822; Silver price also inclined by 0.84% to $40.72.

During August, gold prices increased by 11.7%, and silver price inclined by only 1.5%.

The EURO/ USD declined yesterday by 0.64%, as the USD appreciated against the EURO. During August the EURO/USD slightly fell by 0.5% compared with its initial level at the beginning of the month.

Oil and Gas prices:

WTI Spot oil price reacted to the falls in the stock markets and sharply fell yesterday by 5.94% to $82.38 per barrel; during August the WTI spot oil price declined by 13.9%. Brent spot price also sharply decreased by 3.36% to $106.93 per barrel.

Due to these changes, the difference between Brent and WTI inclined to $24.55/bbl.

Natural gas Henry Hub future price (September delivery) moderately declined by 1.02% to $3.89/mmbtu. The Henry Hub spot price in the other hand inclined by 0.25% to $3.98/mmbtu; the gap between the spot and future price declined to -$0.09, i.e. backwardation. During August, natural gas spot price (Henry Hub) fell by 6.6%.

A summary of yesterday’s Prices Changes:

The table below includes: closing prices, daily percent change, and change in US dollars (except for USD/CAD, in which the change is in Canadian dollars):

Current Gold price and Silver prices Crude spot oil prices, Natural gas spot price 2011 August 18



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 Monthly Analysis and Outlook: