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Oil and base metals down on credit worries

AlfredSokol said: "The credit scare threatens to engulf every possible investment out there. Even the oil and base metal [url=http://investing.reuters.co.uk/news/articleinvesting.aspx?type=breakingFundsNews&storyID=2007-08-10T101849Z_01_TP160822_RTRIDST_0_MARKETS-COMMODITIES-UPDATE-1.XML]futures[/url] are down on fears of a credit crunch. [quote] Oil and base metals prices slipped on Friday alongside equity markets as investors fearing a credit crisis could hit economic growth retreated to safe assets such government bonds and cash. But gold recovered from Thursday's steep falls as bargain hunters joined the fray, while soft commodities steadied. Escalating problems in the high-risk U.S. subprime mortgages have squeezed global liquidity and threatened to trigger a seizure in the financial system and damage world growth. However, fund managers and analysts say commodity market reaction to financial market turmoil has been relatively subdued because the overall picture of strong demand from fast-growing emerging market countries hasn't changed. "Any slowdown in global economic growth will clearly be reflected in metal and oil prices, but the long-term picture is still good," said Edward Hands, senior portfolio manager at Commerzbank Alternative Investments.[/quote] Could just be an overreaction. Time will tell."

ratAphooey said: "If people are this frightened should the money be pouring into gold by now. head for the hills and all that?"

AlfredSokol said: "Oil prices are getting interesting. They should fall off a bit soon. Maybe this will ease the minds of the consumers."