Commodities showed a dismal performance in the early part of Asian trading session on Tuesday. Crude oil tumbled down on the New York Mercantile Exchange for August delivery to post a drop of 0.44%. Trading at USD 94.76 per barrel in Asia, light, sweet crude futures had finished the Monday session in the U.S. at USD 94.90 a barrel, shedding 0.06%.
The sudden drop in oil futures is thought to be the after-effects of the closing down of a Canadian pipeline to the U.S. due to flooding. The decision came ahead of the leeway that U.S. quantitative easing will come to a standstill, which usually acts as a strong supporter of the U.S. dollar. It resulted in a surge in the oil prices in the U.S. on Monday. This hike in oil rates prompted several investors to shift their focus from the scale back of U.S. stimulus efforts, which was weighing on the minds of traders for long now.
Several commodities bulls are still pretty much apprehensive about the destiny of hard assets at the end of the term, after Fed’s Chairman Ben Bernanke indicated scale back of monetary stimulus measures by the end of 2013, which may be completely terminated in 2014 if the country’s economy looks good.
Brent futures also registered a slip of 0.17%, as it was trading at USD 100.88 per barrel on the ICE Futures Exchange for August Delivery.
Coming to the yellow metal, Gold futures witnessed an upward movement in the Asian trading session on Tuesday. Gold went up by 0.43% to trade at USD 1,282.45 per troy ounce for August delivery on the Comex division of the New York Mercantile Exchange. On Monday, the yellow metal ended the U.S. trading session at USD 1,288.05 a troy ounce, posting a drop of 0.31%.
Analysts had predicted that Gold futures would face resistance at USD 1,391.35 a troy ounce and strengthen at USD 1,268.75 a troy ounce, high of last Monday and low of Friday apiece.
Meanwhile, silver went up by 0.68% on the Comex division as it traded at USD19.655 per ounce for July delivery. Moreover, copper futures slumped by 0.42% for July delivery on Asian session to trade at USD3.026 per ounce.