Precious Metals: Sharp declines are being seen in the precious metals complex this morning, as a rally in the U.S. Dollar and lower oil prices are slowing the voracious investor appetite for Gold and its brethren. Aggressive speculator selling was seen in Tokyo, with the Tokyo Commodity Exchange (TOCOM) Platinum and Gold contracts showing hefty losses on the close of trading. In early New York trade, December Gold is trading at $738.20, down $15.90, and January Platinum is trading at $1361.00, down $40.20.
Crude Oil: NYMEX light sweet crude Oil futures continue their sell-off after Friday’s technical reversal, falling below the $80 per barrel mark, as traders contemplate lower Oil demand from refineries, as profit margins erode. The price of refined products such as Gasoline and Heating Oil have not kept pace with the rising price of Crude, which has cut the margins refiners were getting for processing Oil into energy products. In addition, a stronger greenback the past two days may start to crimp demand for commodities priced in Dollars from foreign buyers. In early trade, November Crude Oil is trading at $79.19, down $0.99.
Dow Jones Index futures: After a record setting day on Monday, Dow futures continue to climb, as traders move back into equities, as investors are starting to believe the worst may be over from the fall-out over the subprime mortgage crisis. The early morning rally comes despite expectations that this morning’s release of the National Association of Realtors' index will show a drop in the number of signed contracts to buy previously owned homes in August. In early trade, December mini-Dow futures are trading at 14182, up 25.
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