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Rabu, 05 Januari 2011

The Wall Street Journal Commodities Taking a Bath

While stocks have a ho-hum second day in 2011, commodities are where the action is today – and it’s not a pretty picture.

Goldbugs are bugging out as gold falls 3.1% to $1378.50/oz on the Comex. That’s the biggest one-day percentage drop since July 1, 2010 and the biggest dollar drop since Feb. 4, 2010. Still, the barbarous relic is up 23% from one year ago.

Silver? The darling of 2010 slumped 5.2% to $29.49/oz. Still up a whopping 66% from one year ago.
Dr. Copper is also easing, down 2%, ending a three-session win streak. Biggest percentage drop since

November 22, 2010, but still riding a 29% gain from one year ago.
Among stocks, Freeport McMoran Copper & Gold is off 1.8%, Newmont Mining is down 3.9%, Rio Tinto is sliding 1.2% and Barrick Gold is falling 2.3%.

Metals aren’t alone in taking the pipe today. Corn is down 2% and crude oil is off 2.5%, retreating from a session high of $92.07 a barrel to $89.38 a barrel.

Curiously, ExxonMobil is muscling higher 0.4% to a new 52-week high despite the drop in crude. Chevron, meantime, is down 0.5% after hitting its own 52-week high earlier in the session. Oil investors must be thinking the crude drop may not last.

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