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Market fluctuations: Equities surge, gold slumps, and commodities dip

Friday, it was equities that sold off on higher risk, even though there were signs the Israelis had not really retaliated against Iran. Despite that, gold was boosted by a bit of safe-haven buying.

Monday, tensions had eased sharply over the weekend, and it was equities that surged, with commodities—led by a tanking gold price—selling off.

Even though overnight futures trading showed a small gain for the ASX 200 Tuesday morning, the significant fall in gold, the dip in oil, and a small sag for iron ore will temper that optimism.

Comex gold prices are now more than $US100 an ounce under the all-time high hit last week of $US2,448 an ounce after the metal traded around $US2,343 an ounce in Asia on Tuesday morning. That’s a fall of almost 3%, or more than $US70, and the largest for more than a year.

Oil slid to just over $US83 a barrel for US West Texas Intermediate-style crude, the lowest in three weeks. However, Brent edged higher in early Asian trading Tuesday morning to more than $US87 a barrel.

Copper was caught up in the sell-down, losing 0.2% to trade around $4.48—still the highest it has been for more than a year. However, silver slumped more than 5.4% as punters deserted it, and the price crashed to around $US27.27 an ounce.

Iron ore in Singapore eased to around $US116 a tonne, down from $US117.35 on Friday.