Commodities prices finish mixed after concerns about Goldman Sachs stoke demand for dollar
By APMonday, April 19, 2010
Commodities prices end mixed as dollar rises
NEW YORK — Commodity prices ended mixed after investors dumped risky assets following the government’s charges against Goldman Sachs.
Concern about what the case against Goldman might mean for financial industry profits hurt markets for much of the day. That fed a demand for the dollar.
“People go into the dollar short-term as a risk-aversion play,” said Rich Ilczyszyn, a commodities analyst at Lind-Waldock.
The SEC on Friday said Goldman didn’t tell clients about conflicts of interest in mortgage investments it sold. Goldman has said it would fight the charges.
The ICE Futures US dollar index, which measures the dollar against a basket of currencies, rose 0.1 percent. Most commodities are priced in dollars. The stronger dollar drives up prices for foreign buyers and hurts demand.
Investors also placed bets that demand for resources would fall following the eruption of a volcano in Iceland that has halted air travel in much of Europe. There is also concern that it could hurt an economic rebound.
“Initially, it starts with energy but then it probably goes across the board,” Ilczyszyn said, referring to concerns about economic problems from the eruption. “You start seeing profit-taking in, you know, gold and everything else.”
Gold for June delivery fell $1.10 to settle at $1,135.80 an ounce.
Benchmark crude for May delivery fell $1.79 to settle at $81.45 per barrel on the New York Mercantile Exchange. It fell $2.27 on Friday.
In other Nymex trading, heating oil for May delivery fell 6.01 cents to settle at $2.1568 a gallon. Gasoline fell 2.26 cents to close at $2.2544 a gallon. Natural gas dropped 9.5 cents to $3.944 per 1,000 cubic feet.
Wheat fell 23 cents to settle at $4.795 a bushel. Soybeans fell 8.5 cents to $9.865 a bushel. Corn fell 16.75 cents to $3.5725 a bushel.
Silver for May delivery rose 5.6 cents to settle at $17.731 an ounce. Copper rose 2.20 cents to $3.5190 a pound.
