September 17, 2013 / 8:58 PM / 4 years ago

COMMODITIES-Oil down on Syria; gold slips as Fed stimulus cut eyed

By Barani Krishnan
    NEW YORK, Sept 17 (Reuters) - Oil prices fell on Tuesday as
investors saw little danger of an U.S. attack on Syria that
could disrupt Middle East oil supplies, and gold slipped in
anticipation the U.S. Federal Reserve will announce a cut in its
bond-buying stimulus.
    Arabica, the premium-grade coffee bean, tumbled to
its lowest close in more than four years as the market extended
its long-term bear trend. 
    Soybean futures also fell, for a third straight day,
on technical weakness and softening cash markets ahead of the
U.S. harvest. 
    The Thomson Reuters-Jefferies CRB index, a global
indicator for commodities, fell nearly 1 percent on the broad
selloff.
    Sixteen of the 19 commodities tracked by the CRB closed
down, with crude oil losing 2 percent and arabica coffee as much
as 4 percent. Orange juice, a smaller market compared to many
U.S. commodities, fell 6 percent, the most on the CRB.
    Oil's benchmark Brent crude settled at a six-week low as
major world powers met to draft a resolution to destroy Syria's
cache of chemical weapons, calming investor fears of an imminent
U.S. military response. The resumption of some Libyan output
also pressured prices.
    "The Syria story was a 'bulltrap'," said Sarah Emerson,
managing director of Energy Security Analysis Inc in Wakefield,
Massachusetts. "I guess the excitement had to run its course.
The decision on chemical weapons triggered a sell off."
    Brent settled $1.88 per barrel lower at $108.19,
after trading as low as $107.41. U.S. crude settled down
$1.17 at $105.42. 
    Gold fell as investors braced for the Fed's expected
announcement of a reduction in its bond-buying stimulus.
    The Fed's Federal Open Market Committee will issue a
statement on Wednesday after a two-day policy meeting.
Economists polled by Reuters expect policy makers at the U.S.
central bank to announce a $10 billion reduction in the Fed's
$85 billion monthly bond-buying program, which had been integral
to the rally in gold over the past three years.
    The spot price of gold fell 0.2 percent to $1,310.55
an ounce by 3:13 p.m. EDT (1913 GMT). 
    
 Prices at 4:46 p.m. EDT (2046 GMT)      
                              LAST/      NET    PCT     YTD
                              CLOSE      CHG    CHG     CHG
 US crude                    105.54    -1.05  -1.0%   14.9%
 Brent crude                 107.79    -2.28  -2.1%   -3.0%
 Natural gas                  3.745    0.007   0.2%   11.8%
 
 US gold                    1309.40    -8.40  -0.6%  -21.9%
 Gold                       1310.20    -3.19  -0.2%  -21.7%
 US Copper                     3.22     0.00   0.0%  -11.8%
 LME Copper                 7075.00   -10.00  -0.1%  -10.8%
 Dollar                      81.150   -0.140  -0.2%    5.7%
 CRB                        286.718   -2.744  -1.0%   -2.8%
 
 US corn                     454.00    -2.50  -0.6%  -35.0%
 US soybeans                1342.50    -5.75  -0.4%   -5.4%
 US wheat                    643.00     1.75   0.3%  -17.4%
 
 US Coffee                   111.05    -3.75  -3.3%  -22.8%
 US Cocoa                   2576.00     0.00   0.0%   15.2%
 US Sugar                     16.79    -0.15  -0.9%  -13.9%
 
 US silver                   21.735   21.515   1.6%  -28.1%
 US platinum                1422.40   -18.80   0.0%   -7.6%
 US palladium                705.25     0.95   0.1%    0.3%

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