Traders’ wariness towards growth plays was compounded by news that Goldman Sachs had advised clients to lock in profits on oil and other commodities as they looked vulnerable to a short term correction.
The bank’s comments seemed to hit a nerve in a sector that many saw as vulnerable after many months of strong gains and very high levels of “long” speculation.
Crude oil fell back from a fresh cyclical high of $113.46 a barrel, losing 3.5 per cent on the session. On Tuesday, West Texas Intermediate is little changed at cents at $108.93.
Precious metals were particularly hard hit by the Goldman-induced selling. Silver had hit a 31-year high of $41.93 an ounce but fell back at one point to $39.75, a 5.2 per cent reversal. The grey metal is currently at $40.72, outperforming gold, which is off 0.3 per cent at $1,462 an ounce after hitting a record $1,476 on Monday.
No comments:
Post a Comment