On Tuesday a return of global sentiment on risk supported the euro, equities and therefore also cyclical commodities. Hence, crude posted solid gains. Namely, Brent strengthened by about 0.9 percent whereas WTI gained more than 1.5 percent on news that U.S. crude stocks fell by 5.2 million barrels last week (API). The official statistics from the U.S. Department of Energy will be released today.
Base metals prices grew across the board on Tuesday. Zinc outperformed the rest of the complex but both copper and aluminium posted significant gains as well.
In the evening, President Obama indicated that progress has been made on the debt talks, which supported U.S. dollar and copper price dropped from three-month highs at 9874 USD per ton.
Better global sentiment weighed on precious metals prices on Tuesday. Good corporate earnings as well as a progress in U.S. debt talks supported investors’ risk appetite and hence played against safe-haven assets.
Therefore, after eleven consecutive sessions of gains, the price of gold dipped below 1600 USD per troy ounce (USD/toz).