Gold price breaks out – Oil Prices Tumble. Commodity market remains volatile
The price of gold has definitively broken through what was seen as a key resistance level, setting the precious metal on a path to its first positive year-end finish in three years.
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Bullion settled at around $1,188 an ounce on the Comex division of the New York Mercantile Exchange yesterday. It has since moved broadly sideways and was holding ground at around $1,185 in London this morning, still well above the $1,170 threshold at which previous rallies had floundered.
A number of analysts have predicted that a confident break away from persistent resistance would see a rise beyond $1,200 by the year’s end, signifying a positive move overall this year and the first annual increase since 2012.
While Commodities’ market remains volatile, Oil Prices Tumble as OPEC Production Grows.
Oil prices dropped Monday after the Organization of the Petroleum Exporting Countries reported that its output rose to a more-than-three-year high last month.
OPEC said in a monthly report released Monday that it produced 31.57 million barrels a day in September, up about 109,000 barrels a day from August and above the group’s target of 30 million barrels a day. The group’s output was the highest reported level since April 2012.
Prices plunged in late 2014 after a boom in U.S. oil drilling pushed the global crude market into oversupply. Since then, U.S. production has started to fall as companies have cut spending on new drilling. But OPEC and other countries have ramped up their production in an effort to maintain market share, keeping prices under pressure.
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