Gold reached new highs | oil sharply fell –August 8

Gold and silver changed direction from the end of last week and the concerns over the stability in the US affected them; gold reached new record high as it passed the $1,700 mark; oil has resumed its sharp falls and reached new lows; natural gas ended unchanged.

 Here is a summary of the price movements of precious metals and energy commodities for August 8th:

Gold inclined by a very high percentage yesterday of 3.72% to $1,713; Silver also sharply inclined on Monday by 3.06% reaching $39.38.

During August, gold increased by 5%, but silver fell by 1.8%.

The EURO/USD sharply fell yesterday by 0.73%, as the USD appreciated against the EURO. During August the EURO/USD fell by 1.5% compared to its initial level at the beginning of the month. 

 WTI price resumed its falls and declined yesterday by 6.41% to $81.31 per barrel; during August the WTI declined by 15%. Brent price also decreased by 5.74% to $103.46 per barrel.

Due to these falls, the difference between Brent and WTI fell to $22.15/bbl.

Natural gas future price (September delivery) remained unchanged at $3.94/mmbtu. The NG spot price also didn’t change at $4.00/mmbtu; the gap between the spot and future price remained at -$0.06, i.e. backwardation. During August, NG spot price fell by 6.1%.

 For further reading:

Natural gas prices outlook for August 2011

Gold and silver prices outlook for August 2011


 Lior Cohen, M.A. commodities analyst and blogger at Trading NRG.