Oil tumbled down on Friday. Meanwhile, Gold climbed higher after President Donald Trump announced that he tested positive for coronavirus with just one month left until the U.S. presidential election.
Brent dropped as much as 5.1%, to its lowest level since June. West Texas Intermediate crude futures also collapsed by 5.4% in New York.
Crop futures plummeted down. Copper hit a seven-week low earlier, with the global crude benchmark helping to drag raw materials lower. Furthermore, a Bloomberg gauge of commodity spot prices has plunged about 4% from an early September peak amidst a surge in virus cases worldwide. Trump’s positive result only fuels more uncertainty over the election.
Paul Horsnell, the head of commodities research at Standard Chartered, noted that a risk-off event in a softening market due to worries over fundamentals doesn’t leave much to hang onto in the short-term.
Crude demand has been struggling to recover due to the resurgent virus. At the same time, supply from the Organization of Petroleum Exporting Countries and its allies increases steadily. Russia also raised its condensate and crude production last month.
Meanwhile, Saudi Arabia’s oil exports skyrocketed to a four-month high in September. Still, total output from the oil-producer group steadied last month after the United Arab Emirates pulled production back sharply in atonement for few months of oversupply.
How Did Metals and Crops Fare?
Spot gold climbed up by 0.1% at $1,908.46 an ounce. Silver also gained 1.1%. Prices have dropped from August’s record high. However, Gold remains strong, supported by low-interest rates and a resurgence in coronavirus cases in some parts of the world. The heightened uncertainty heading into the U.S. elections also boosted it.
Meanwhile, Copper edged up by 0.1% a ton on the London Metal Exchange, recovering from an earlier 1.9% tumble to its lowest point since mid-August.
Soft commodities were under pressure. Cocoa futures plunged by 2.8% to a five-week low in New York, while coffee reached its lowest point since July. Sugar also decreased by 1.3%.