Iron ore prices fell again on Friday night, trimming last week’s gains but still leaving the price above $US50 a tonne and up more than 17% in the past two weeks.
Gold eased, but oil hit 2016 highs and is looking to have bottomed out. However after a couple of solid weeks copper sold-off last week.
Commodity prices will be impacted by the outcome and comments from the two-day meeting of the US Federal Reserve Tuesday and Wednesday nights, our time. A rate increase is thought not possible, but wouldn’t surprise.
But the central bank will toughen up comments about the future pathway for rate rises in 2016 and 2017.
The fall in iron ore saw the price down 1.4% to $US57.09 a tonne according to the Metal Bulletin.
The price has declined every day after last Monday’s 19% rally to $US63.74, the biggest gain in daily data going back to 2009.
Friday’s fall happened after futures prices in Singapore fell near $US50 a tonne.
The fall left iron ore still up more than 6% for the week, following an 11% rise in the previous week.
Meanwhile oil futures rose on Friday on hopes the market has stabilised.
US prices were up more than 7% for the week, thanks to a belief that the big sell-off is over for the time being.
Friday saw US oil rig use hit an all time low last week of 480, against the previous low of 488 in 1999, according to US oil services group, Baker Hughes.
Gold futures fell from a 13-month high Friday, pushing the metal to a loss for the week as investor confidence grew.
Comex April gold fell by $US13.40, or 1.1%, to settle at $US1,259.40 an ounce, down 0.9% for the week.
Comex May silver though added 5.6 cents, or 0.4%, on Friday to $US15.605 an ounce, leaving it 0.6% lower over the week
And Comex May copper rose 2.1 cents, or 1%, to end at $US2.241 a pound early Saturday, our time.
But that left prices down 1.5%.
