Commodities Gain on U.S. Inventories Data

Ivaylo
15 Jun, 2007
New York City

Commodities futures gained broadly on Thursday after the latest U.S. economic data, including the producer price index, alleviated investors fears of inflation. Agriculture prices rallied on worries about a damaged U.S. wheat crop. Gold and silver advanced despite the strengthening of the dollar. Industrial metals also surged supported by strong U.S. economic data concerning economic growth shown in the Fed

[R]5:00AM Gold and silver advance Thursday on U.S. economic data.[/R]

Gold for August delivery gained $3.20 to end at $655.90 an ounce on the New York Mercantile Exchange, while silver advanced 10.5 cents to settle at $13.165 an ounce. Overseas, the industrial metals market advanced, helped by the Fed''s Beige Book report, which showed the U.S. economy developed at a moderate rate in the first part of the second quarter.

Nickel surged nearly 5 percent and copper gained more than 2 percent before the close of the London Metal Exchange. Zinc, lead, aluminum and tin also advanced. On the Nymex, copper prices rose 7.95 cents to end at $3.3925 a pound.

Crude oil and gasoline prices continued to strengthen buoyed by the inventories report on Wednesday from the Energy Information Administration. Crude oil for July delivery increased $1.39 a barrel to settle at $67.65 on the Nymex. July gasoline futures rose 6.94 cents to close at $2.2247 a gallon.

On the Chicago Board of Trade, wheat prices rallied to a 10-year high on heavy rains in the Plains. July wheat futures climbed 17 cents to settle at $6.064 a bushel on the CBOT. Corn and soybean prices followed wheat, with July corn rising 5 cents to close at $4.094 a bushel and soybeans gaining $1.60 to end at $8.274 a bushel.