Another day of falling crude prices dragged gold below $960/oz in overnight trade. Nymex crude fell on uptick in inventory data, to lowest level since end-June; stronger USD, rebound in U.S. stocks also weighed on gold. DJIA rallied 2.5%. Platinum group metals fared badly on woes in U.S. auto industry; metal fell to 2.5 month low of $1,924/oz. Spot gold at $960.55/oz, silver at $18.78, palladium at $428. Base metals weaker with LME copper, aluminum leading way down as crude prices dragged and amid focus on weak outlook for U.S. economy.
"It seems commodity markets are coming around to the view that one cannot have a situation of ever-rising prices just as the pillars supporting international growth are being eroded by higher global inflation rates and tighter money," says MF Global analyst Edward Meir. Fed's Bernanke reiterated concern about U.S. economic growth in 2nd day of Senate testimony but added he's confident economy will weather "financial storms." LME 3-month copper off $65 at $8,080/ton, aluminum down $93 at $3,122, lead off $29 at $1,960, zinc off $44 at $1,795, nickel off $400 at $20,400, tin off $100 at $23,150. Nymex August crude now recovering slightly, +25 cents at $134.85/bbl.
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