Shine Goes Off Gold While Oil Surges In November

By Glenn Dyer | More Articles by Glenn Dyer

Contrasting Novembers for oil and gold – while both eased on the last day of the month, that was in no way indicative of how the two key commodities traded through the month.

Gold again lost ground on the final day of the month, dipping 0.4% to $US1,780.90 cents at settlement on Comex in New York.

That left it down 5.6% for the month which ended up being the worst for five months as the price slid more than $US200 an ounce.

Gold got as low as $US1,769 an ounce in trading but late trading saw the losses trimmed to $U4 an ounce at around $UA1,784 at 7.15 am Sydney time.

While oil dipped on the last day of the month as OPEC agreed to postpone the 2 million barrel a day cut in its production cap (it needs to talk to Russia and other non-members tonight, our time), the price was still up sharply in November.

OPEC is in favour of an extension, Russia might not be – the two sides failed to reach an agreement on Sunday so more talks tonight.

Oil, in contrast, has benefited nearly 30% from the prospect of a revival in demand should vaccines allow travel and transport to resume next year.

Brent crude for January delivery, which expired on Monday, dropped 68 cents, or 1.4%, to $US47.50 a barrel while The more actively traded February Brent contract was down 85 cents, or 1.76%, at $US47.40.

US West Texas Intermediate crude for January fell 73 cents, or 1.6%, to $US44.80 a barrel. But WTI turned positive just after 7 am Sydney time in after-hours trading to be up a cent, then fell back to be down 0.15% at 7.15 am.

Brent crude meanwhile was higher in after-hours trading at just over $US48 a barrel at 7.15 am Sydney time Tuesday.

Iron ore prices ended November above $US130 a tonne for the first time this year at $US131.63, a gain of $US2.01 on the day and 12% for November from October 30’s close of $US117.49.

Comex copper in New York continued on its way higher, almost reaching $US3.50 a pound in trading and settling up around 1% at nearly $US3.45 a pound.

That was after three-month copper on the LME rose 0.9% to $US7,566 a tonne by after touching $US7,708.50, the strongest since March 2013.

Copper rose 13% so far in November, its biggest monthly gain since November 2016.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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