Stocks and Oil Fall, Gold Surges

123jump.com Staff
21 Feb, 2008
New York City

Gold surged as the inflation worries mounted. Gold reached a new high as it hovered near $950 per ounce in New York Trading. Stocks fell in the afternoon trading after the release of regional report from the Philadephia Federal Reserve. The factory index, a measure of regional manuafacturing activities showed a sharper than expected drop in activities. Crude oil declined after the weekly inventories report showed a rise in inventories at the end of last week.

[R]3:00PM New York – Crude oil fell after the weekly inventory report. Stocks decline as gold surged to a record high.[/R]

U.S. stocks fell in the afternoon trading after a weak read on manufacturing from the Philadelphia Fed and weekly report in crude oil inventories.

Philadelphia Federal Reserve reported that Factory Index, which measures general business activities in the region showed -24 in February and declined from the -20.9 in January.

Investors looking to hedge their positions against rising inflation and the Fed’s inability to stem inflation lifted gold to a record high. Gold futures for the front month delivery rose $9.90 to $947.70 per ounce.

Crude oil declined $1.57 to $98.13 a barrel after the weekly inventory report. The Energy Information Administration reported a rise in crude oil and motor oil inventories. The report noted the following.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 4.2 million barrels compared to the previous week. At 305.3 million barrels, U.S. crude oil inventories are in the middle of the average range for this time of year. Total motor gasoline inventories increased by 1.1 million barrels last week, and are above the upper limit of the average range.

Both finished gasoline inventories and gasoline blending components inventories increased last week. Distillate fuel inventories decreased by 4.5 million barrels, and are in the lower half of the average range for this time of year.

Propane/propylene inventories decreased 2.8 million barrels last week. Total commercial petroleum inventories decreased by 3.7 million barrels last week, and are in the upper half of the average range for this time of year.