Arab Today, arab today prices of oil gold and grains fall on news of bin laden death
Last Updated : GMT 14:57:33
Arab Today, arab today
Arab Today, arab today

Risk premium on the underpinning commodities prices

Prices of oil, gold and grains fall on news of Bin Laden death

Arab Today, arab today

Arab Today, arab today Prices of oil, gold and grains fall on news of Bin Laden death

Traders work on the floor of the New York Stock Exchange
SINGAPORE ? Agencies

Traders work on the floor of the New York Stock Exchange Oil and gold fell on Monday, dipping by as much as two percent after news of Osama bin Laden\'s death stripped some of the risk premium that has been underpinning commodities prices. Silver tumbled as much as 13 per cent. Futures on the Standard & Poor\'s 500 Index rose 0.5 per cent, indicating US shares may extend a four-day rally when markets open later on Monday.
Those on the Euro Stox 50 Index advanced 0.8 per cent. The MSCI Asia Pacific added 0.7 per cent, set for the highest close since January 19. The yen fell against 15 of 16 major peers.
In Washington, US President Barack Obama said Al Qaida\'s elusive leader, whom authorities had sought in vain since his late-2001 disappearance in Afghanistan, was killed in Pakistan on Sunday and his body recovered.
The news could reduce the risk premium swelling prices because of war in Libya and unrest in the Middle East and North Africa, although Obama did urge vigilance against the risk of anti-American violence.
\"If Osama is taken out, you are going to see risk premium being wiped out from the market. It is going to bring down oil prices by $5 to $10 if people warrant that risk premium is important,\" said Jonathan Barratt, managing director of Commodity Broking Services, based in Sydney.
ICE Brent crude for June was down 98 cents at $124.91 a barrel, still just over $2 short of last month\'s 32-month high above $127, while US crude  slid $1.19 to $112.74 by 0508 GMT.
\"Oil markets are likely to be the most volatile given their higher sensitivity to the tug of war between lower risk overall and the possibility of isolated disturbances in some parts of the Middle East and central Asia,\" said Mohamed Al Erian, chief executive and co-chief investment officer of PIMCO, the world\'s largest bond fund manager.
Oil was already down before the news about Bin Laden, after Nato air strikes over the weekend killed one of Libyan leader Muammar Gaddafi\'s sons and after industry sources said that Saudi Arabia raised output in April.
Gaddafi\'s youngest son and three grandchildren were killed in a Nato air strike, the Libyan government said on Sunday. Britain said that while it was not targeting the leader, it was homing in on the regime\'s military machine.
Asian stocks earlier gained after Warren Buffett said Berkshire Hathaway Inc. would be \"delighted\" to invest in Japan and elsewhere in the region, as data showed South Korean exports rose to a record in April and Australian Treasurer Wayne Swan said next week\'s budget will forecast the creation of 500,000 jobs within two years.
\"This is a positive development in the campaign against terrorism,\" said Jonathan Ravelas, chief market strategist at Manila-based Banco de Oro Unibank Inc. in Manila. \"In the last 10 years, bin Laden\'s presence has been a serious threat to global stability. The flipside is this could be followed by retaliation activities from his supporters.\"
Spot gold prices fell a little over $5 to $1,540.39 an ounce immediately after the reports of Bin Laden\'s death, having earlier touched an all-time high of $1,575.79. By 0502 GMT, gold had recovered to $1,549.56.
Spot silver stood at $44.64 an ounce, down 6.6 percent on the day, while COMEX silver for July delivery traded at $44.41 an ounce versus $48.599 on Friday. Prices dipped as low as $42.80 for spot and $42.20 in futures markets.
\"Silver is an accident waiting to happen, and it seems like it has incurred \'bumper\' damage today,\" said David Thurtell, an analyst at Citigroup.
Markets across large parts of Asia and much of Europe were closed for May Day and Labour day holidays, reducing the number of market participants and making for volatile trade.
Chicago Board of Trade front-month May corn, which is linked to crude prices though its use in ethanol, fell 1.8 per cent to $7.40-1/2 a bushel, leading losses for wheat, down 1.01 per cent to 7.61-1/2 a bushel.
Further pressure on the corn market came from forecasts of improved weather in the US Midwest that brightened hopes for this year\'s delayed plantings.
The dollar had strengthened by nearly 0.3 per cent earlier on Monday following last week\'s slide, deterring investors from piling into commodities this week.
Last week\'s Federal Reserve reassurance that economic stimulus would continue had hammered the dollar to a three-year low, boosting US crude to above $114 on Friday, the highest since September 2008, and gold to a record earlier on Monday.
But markets\' swift fall in response to Monday\'s news of Bin Laden\'s death could turn out to be brief, one analyst said.
The US dollar rebounded from a three-year low against a basket of currencies on Monday as news of Bin Laden prompted short-covering in a heavily-sold greenback, though traders think any impact will be temporary.
The currency was due for a corrective rebound, dealers said, with players having sold the dollar against pretty much everything from the euro and commodity currencies to oil and precious metals for the past few weeks.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today prices of oil gold and grains fall on news of bin laden death Arab Today, arab today prices of oil gold and grains fall on news of bin laden death

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 12:38 2017 Thursday ,23 February

Lower fares hit Qantas first half profit

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures

GMT 07:26 2017 Thursday ,23 February

A peek inside Qatar's 'gas capital of the world'

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday