Commodities soar as investors’ risk appetite grows
NEW YORK — Prices for oil, copper and other commodities surged Thursday as investors sent a clear signal that they believe the economy is turning around and will send demand for basic goods higher.
The optimism grew out of several surprisingly strong profit reports from companies, including cell phone maker Motorola Inc., and an unexpected drop in the number of people continuing to seek unemployment benefits.
An increased appetite for risk also drove prices higher on the stock market, where major indexes rose about 1 percent, including the Dow Jones industrials, closed up 84 points.
Commodity prices have wavered in recent weeks, tugged back and forth by differing signals on the economy.
Several signs this week suggested that consumers are still reluctant to spend, including a weak report on consumer sentiment and a drop in orders for large manufactured goods. However Thursday’s news on earnings and the economy was enough to reignite hopes that a turnaround is possible by the end of this year.
On the New York Mercantile Exchange, September copper futures jumped 8.65 cents, or 3.5 percent, to $2.5640 a pound.
Among precious metals, gold for December delivery rose $7.60 to $937.30 an ounce, while September silver jumped 22.7 cents, or 1.7 cents, to $13.4850 an ounce. Platinum rose $16.80, or 1.5 percent, to $1,189 an ounce.
Elsewhere on the Nymex, energy futures rallied, with oil, gas, heating oil and natural gas futures all surging at least 5 percent.
Crude prices had fallen 6 percent Wednesday as regulators met in Washington to consider new limits on speculators, which many blame for the volatility in oil and gas prices. But prices recouped nearly all of those losses Thursday, rising $3.59, or 5.6 percent, to settle at $66.94.
Gasoline for August delivery jumped 13.61 cents, or 7.3 percent, to $1.9911 a gallon and heating oil added 9.72 cents, or 5.8 percent, to $1.7685 a gallon. Natural gas for September delivery surged 19.5 cents, or 5.5 percent, to $3.743 per 1,000 cubic feet.
Grain prices posted big gains on the Chicago Board of Trade.
November soybeans surged 55 cents to $9.71 a bushel.
September wheat futures rose 4.75 cents to $5.1625 a bushel, while corn for September delivery rose 11.5 cents to $3.3225 a bushel.
Other soft commodities, including cotton, sugar, cocoa and coffee, also rose.
Related News
Gold, silver inch higher, buoyed by rebound in stocks; oil prices rise slightlySeptember 30th, 2009 Gold, silver inch higher, other commodities mixedNEW YORK — Gold and silver prices broke a three-day losing streak Monday, rising slightly in quiet trading. Oil prices rose, while soft commodities were mixed.
Gold, silver fall for 3rd straight day, even after dollar declines; oil prices rise slightlySeptember 25th, 2009 Gold, silver falter for 3rd day; oil turns higherNEW YORK — Gold and silver prices fell for a third straight day Friday, even after the dollar reversed early gains and slid lower. Oil prices rose slightly, while soft commodities were mixed.
Sharp drop in China's stock market spooks commodities traders; prices for copper, oil plungeAugust 31st, 2009 Copper, oil sell off after drop in Chinese stocksNEW YORK — Growing concerns about a potential falloff in Chinese demand for basic materials sent prices for copper, oil and soybeans tumbling Monday. The decline in commodities came after China's main stock index plunged nearly 6.7 percent overnight, adding to a nearly 3 percent drop on Friday.
Gold prices fall as dollar shows some strength, other metals, oil riseAugust 24th, 2009 Gold falls on dollar strength, other metals riseNEW YORK — A stronger dollar hurt gold prices Monday, but other metals finished slightly higher on hopes that demand for materials will pick up as the economy improves. Gold for December delivery dropped $11 to $943.70 an ounce on the New York Mercantile Exchange as the dollar rose against the euro and the British pound.
Commodities little changed as investors wait for clearer signals on the economyAugust 21st, 2009 Commodities hold steady amid mixed dataNEW YORK — Commodities were little changed Thursday after the latest batch of mixed economic data. Still uncertain about the strength of the economy's recovery, investors were hesitant to buy gold, copper, soybeans and other materials that depend on robust economic activity to drive prices higher.
Prices for copper, silver, oil surge after jump in home sales, reassuring words from BernankeAugust 21st, 2009 Commodities jump on renewed optimism about economyNEW YORK — Investors returned to the commodities market Friday in a big way, sending prices for copper, silver and oil sharply higher amid clearer signs the economy is healing. Commodities prices rallied after the latest report on housing showed further improvement and Federal Reserve Chairman Ben Bernanke reassured investors by describing the economy on the verge of a recovery.
Commodities prices mostly fall as dollar adds to strength after rally Friday; oil, gold fallAugust 11th, 2009 Commodities prices fall as dollar extends gainsNEW YORK —Commodities mostly fell for a second day as a stronger dollar weighed on prices. Commodities are priced in dollars, so when the currency increases in value, futures become more expensive and less attractive for foreign buyers.
Most metals rise amid ongoing weakness in US dollar; gold dips on profit takingAugust 5th, 2009 Metal prices rise slightly on dollar weaknessNEW YORK — Most precious and industrial metals rose Wednesday, building on recent gains as the dollar extended its losses. Gold prices, however, finished slightly lower as investors collected some profits.
Falling dollar, improving manufacturing activity boosts commoditiesAugust 3rd, 2009 Broad rally in commodities sparked by weak dollarNEW YORK — Commodities traders placed more bets on an economic recovery Monday, adding oil, copper and soybeans to their portfolios as the dollar sank to fresh lows. Upbeat reports on manufacturing activity around the world moved investors to dump traditionally safe-haven assets like the dollar and government bonds in favor of buy riskier assets that stand to benefit more as the economy improves.
Commodity prices hold steady as investors refrain from big bets amid mixed signals on economyJuly 27th, 2009 Gold ends flat, other metals slightly higherNEW YORK — Gold prices finished flat Monday, while other metals were slightly higher amid a mixed batch of earnings reports and economic data. RadioShack Corp.
Gold, other metals little changed as investors square positions following recent gainsJuly 24th, 2009 Gold, other metals hold steady after recent gainsNEW YORK — Prices for gold and other metals were little changed during quiet trading Friday as investors squared positions ahead of the weekend following recent gains. "The market has done well over the past few weeks," said Dave Meger, a gold analyst at Alaron, adding that investors are "in a consolidation mood."
Risk appetite among investors has spiked over the past two weeks, as the majority of corporate earnings reports exceed Wall Street's expectations and amid signs that the troubled housing market is stabilizing.
Commodity prices rebound as risk appetite grows; investors hopeful ahead of earningsJuly 9th, 2009 Commodities move higher as risk appetite growsNEW YORK — Investors moved money back into commodities Thursday, sending prices for gold, copper and soybeans higher as they stepped up their willingness to take on risk. Better-than-expected results from aluminum maker Alcoa Inc.
Sell-off in commodities continues as hopes for impending economic recovery fadeJuly 7th, 2009 Commodities fall as hopes for quick recovery fadeNEW YORK — Commodities continued to sell off Tuesday as investors found little reason to place bets on an improving economy. Prices for oil, silver, soybeans and other commodities dropped amid increasing fears that a delay in the economy's recovery will keep a lid on demand for basic materials.
Metals, energy futures move higher amid surge of buying on Wall StreetJune 25th, 2009 Metals, energy prices gain ground as stocks rallyNEW YORK — Metals and energy prices moved higher Thursday, buoyed by a surge of buying in the stock market. Many traders took the rise in stocks as a sign that some optimism about the economy had returned to the market, which benefited economically sensitive commodities like oil and copper.
Gold prices slide to nearly 3 percent loss for the week amid increasing optimism about economyMay 2nd, 2009 Gold prices slide as safe-haven demand withersNEW YORK — Gold prices are lower amid increasing optimism about the economy. Other commodities, like oil and silver, are posting gains.
Loading ...