Oil, Gold Decline on Dollar Recovery
Crude oil and gold extended declines Tuesday as the dollar rebounded on speculation the Federal Reserve's efforts to combat a housing slump and a shortage of funds in credit markets may restore investor confidence.
The Fed lowered interest rates last week, agreed to accept a wider range of collateral on loans and extended credit to securities' firms for the first time.
Gold for immediate delivery dropped as much as 1.4 percent to $906.79 an ounce in Asia and traded at $917.90 an ounce in Singapore at 4:58 p.m. today. Gold, which has plunged 11 percent from its record $1,032.7 an ounce on March 17, is still up 10 percent for the year.
Crude oil for May delivery fell by as much as 1.8 percent to $100.02 a barrel on the New York Mercantile Exchange and traded at $100.56 at 5 p.m. Singapore time. Prices for the most active contract are still up 60 percent in the past year. U.S. crude oil prices are likely to fall toward $90 a barrel this spring as the country's slowing economic growth encourages traders to exit commodity markets, Goldman Sachs Group Inc. said in a report on March 20.
The Fed lowered interest rates last week, agreed to accept a wider range of collateral on loans and extended credit to securities' firms for the first time.
Gold for immediate delivery dropped as much as 1.4 percent to $906.79 an ounce in Asia and traded at $917.90 an ounce in Singapore at 4:58 p.m. today. Gold, which has plunged 11 percent from its record $1,032.7 an ounce on March 17, is still up 10 percent for the year.
Crude oil for May delivery fell by as much as 1.8 percent to $100.02 a barrel on the New York Mercantile Exchange and traded at $100.56 at 5 p.m. Singapore time. Prices for the most active contract are still up 60 percent in the past year. U.S. crude oil prices are likely to fall toward $90 a barrel this spring as the country's slowing economic growth encourages traders to exit commodity markets, Goldman Sachs Group Inc. said in a report on March 20.
