SC: Commodities: Oil falls as dollar gains, Gold skids 4%
LONDON (SHARECAST) - US crude oil futures fell on Friday as the dollar gained against major currencies. Crude for January delivery fell 99 cents to settle at $75.47 a barrel on the New York Mercantile Exchange.
Crude had gained after better than expected November jobs report but as the dollar jumped against the euro and the yen, oil prices turned lower.
The improved US employment picture gave the greenback a big boost on Friday. The Labor Department reported that 11,000 US jobs were lost last month, compared with expectations of a 100,000 reduction. There was also surprise at a drop in the unemployment rate to 10% from 10.2%.
The figures gave the market hopes of a swift economic recovery and good demand for oil, however the dollar’s strength at the end of the week made commodities more expensive for holders of other currencies.
Among precious metals COMEX gold for December delivery fell $48.60 to settle at $1,168.80 an ounce as the dollar turned sharply higher and on increased expectations that the Federal Reserve will increase interest rates sooner than previously forecast.
The jobs report gave a brighter economic picture and put the brakes on gold’s rally.
December silver was down 60.6 cents at o $18.496 an ounce while December copper lost a touch to $3.2135 a pound.
