Oil Tumbles, Gold Has Day Of Unpredictable Trading
ICM Brokers | Aug 12, 2015 04:41AM ET
CL
Crude oil futures tumbled on Tuesday, after the Organization of the Petroleum Exporting Countries said it pumped the most crude in more than three years last month, adding to concerns over a glut in global supplies. On the ICE Futures Exchange in London, Brent oil for October delivery dropped 86 cents, or 1.69%, to trade at $50.16 a barrel during European morning hours. In its July monthly report released earlier in the day, OPEC said the cartel produced the highest amount of oil in more than three years, amid increased output from Iran. The 12-member group raised production by 100,700 barrels a day in July to 31.5 million, the highest level since May 2012. The increase in output comes despite a global supply glut, which has sent prices tumbling in recent months.
GOLD
Gold futures closed slightly higher following a day of unpredictable, see-saw trading, as China lowered the value of its currency by almost 2%, marking its most significant devaluation in more than two decades. In overnight trading, the People's Bank of China devalued the renminbi to 6.2298 against the dollar on Tuesday, resulting in a 1.9% adjustment from Monday's level of 6.1162 versus the greenback. In response, the Chinese yuan suffered its worst one-day decline in more than a decade and fell to its lowest level in three years since the central bank widened the trading band against the dollar in April, 2012.
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