Commodities Slide on Global Growth Concern, Led By Crude Oil

The Standard & Poor?€™s GSCI Index of 24 commodities fell as much as 2.6 percent in New York, the most in more than three weeks, as investors sold all but the safest assets. Coffee traded at a two-week low, gasoline had its biggest decline in five weeks and West Texas Intermediate crude retreated the most in a week. Gold rose for a second day.

Three German officials said today that Chancellor Angela Merkel?€™s government is preparing plans to shore up banks in the event that Greece can?€™t pay its debts. European Central Bank President Jean-Claude Trichet said yesterday policy makers cut their growth forecasts for this year and next. U.S. President Barack Obama, in an television address yesterday, called on Congress to pass a $447 billion plan to boost employment after hiring by U.S. companies stalled last month.

?€œIt?€™s another day of risk aversion across the board,?€ said James Zhang, a strategist at Standard Bank Plc in London. ?€œCommodities have followed the euro and the equity market down. Clearly the market is lacking confidence in policy makers?€™ ability to revive the economy, despite Obama?€™s Jobs Act.?€

The S&P GSCI Index retreated 2.5 percent at 12:40 p.m. in New York. Arabica coffee for December delivery fell 2.6 percent to $2.767 a pound on ICE Futures U.S. and traded at $2.758 earlier, the lowest level since Aug. 26. Gasoline tumbled as much as 12.35 cents, or 4.3 percent, to $2.7621 a gallon, the biggest drop since Aug. 4. Crude oil for October delivery lost $2.23, or 2.5 percent, to $86.82 a barrel on the New York Mercantile Exchange.

Gold advanced as investors sought a store of value amid declines for stocks, the euro and higher-yielding currencies such as the Australian dollar and South African rand. December- delivery futures gained $11.70, or 0.6 percent, to $1,869.20 an ounce the Comex in New York.

--With assistance from Grant Smith in London. Editors: Stuart Wallace, Sharon Lindores

To contact the reporter on this story: Justin Carrigan in London at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

To contact the editor responsible for this story: Stuart Wallace at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Authors: Commodities - Yahoo! News Search Results

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