Commodities: Gold and oil fall amid Greek bailout speculation and US oil rig decline
Gold prices decreased on Monday as investors were focussed on Greece and the possibility of a bailout extension. Gold futures for April delivery receded 0.3% to $1,200.80 an ounce.
IG analyst David Madden said: “Gold has crept above $1,200 again as renewed fears about Greece led to traders seeking a safe-haven asset.
“The $1,200 level is a major psychological level for the precious metal, and any time it dips below the price there is a barrage of buyers waiting in the wings. ”
Meanwhile, Brent futures fell 2.2% to $58.90 at the end of Monday’s session, while ICE WTI futures decreased 3% to $49.39.
CMC Markets analyst Jasper Lawler noted: “The US rig count fell less than expected on Friday leaving oil prices lower.”
“The fact that oil prices have stabilised this year hasn’t changed the policy of Middle Eastern or indeed any other producers who are pumping as much as possible to maintain market share.”
Over on LME, three-month copper futures fell 0.7% to $5,682.00 a tonne.
Madden added: “The copper market is subdued as the Chinese celebrate the Lunar New Year, and the metal has been trading sideways for the past six weeks as traders adjust to the fact that the boom years are over in China.”