Commodity prices fell across the board on Friday as concerns about global demand overshadowed the possibility that Greece could avoid a default on its debt.
Prices of oil, manufacturing metals and many agriculture products settled lower. Gold and silver were among the few winners as investors sought assets considered relatively stable during turbulent economic times.
European leaders indicated they are closer to reaching an agreement that would give additional loans to Greece.
The prime minister of Greece also replaced his finance minister in a cabinet reshuffle which raised hopes that the government will be able to approve austerity measures necessary to avoid a default. A default by Greece would cause turmoil on financial markets.
Many investors sold off commodities contracts as a precaution because Greece's situation still was unsettled and developments could occur over the weekend when markets are closed, MF Global senior commodities analyst Edward Meir said.
"We still are of the view that most commodities will be moving lower over the course of June, weighed down by the euro crisis and the bid that the dollar will receive as a result," Meir wrote in a note to clients. "More importantly, the global economy needs to see much lower energy prices in order to jump-start demand."
Gold for August delivery rose $9.20 (Dh33.76) to settle at $1,539.10 an ounce and July silver gained 18.9 cents to $35.748 an ounce.
From / Gulf News