Oil and Precious Metals Move in Bullish Rally on Monday

Crude oil futures jumped on Monday in reaction to weaker greenback and stance of Germany and France to support European Banks. Crude oil futures contract for November delivery jumped 2.9 percent or $2.43 to settle at $85.41 per barrel on the New York Mercantile Exchange.

Analysts attributed the oil surge to falling US dollar as the dollar index DXY which measures the US dollar’s performance against its major rival currencies declined to 77.549 as compared to 78.660 on Friday’s North American trading session.

Gasoline futures contract for November delivery surged 1.8 percent or $0.05 to $2.70 per gallon while heating oil futures contract for the same month delivery gained 1.6 percent or $0.05 to $2.90 per gallon. Natural gas futures contract for November delivery climbed 1.7 percent or $0.06 to $3.54 per million British thermal units.

Buying spree was also witnessed in precious metals as the gold futures contract for December delivery surged 2.1 percent or $35 to $1,670.80 per ounce at Comex trading or the New York Mercantile Exchange.

Chief executive, Ross Norman from Sharps Pixley in London commented, “Gold is remaining bid-up on not just [a weaker] dollar, but particularly buoyant physical demand amongst retail investors, Demand in China has been especially strong with the bars selling at more than a $3 premium over London prices.”

Among other metals, silver futures for December delivery also gained 3.2 percent or $0.99 to settle at $31.98 per ounce. Platinum futures contract for January delivery advanced 2.1 percent or $31.80 to $1,525.10 while December’s palladium contract gained 4.9 percent or $28.45 to $614.30 per ounce.


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