Commodities continue pullback on economic concerns
NEW YORK, USA (AP) — Commodities fell again Friday as investors became increasingly pessimistic about the global economy.
Energy and metals led the retreat. Oil prices touched a two-month low.
Uneasy investors pulled money out of riskier investments like commodities and poured money into safer assets like the dollar and bonds. A stronger dollar has an especially bad effect on commodities because it makes them less attractive to overseas investors.
The ICE Futures US dollar index, which measures the dollar against six other currencies, rose 0.8 per cent after gaining 0.7 per cent Thursday.
A mixed report on employment added to concerns about the US economy. While the jobless rate dipped unexpectedly to 9.7 per cent in January from 10 per cent, employers also cut 20,000 jobs, more than the 5,000 economists expected, according to Thomson Reuters. The two numbers are calculated from different surveys.
Analysts say the drop in the unemployment rate was encouraging, but not enough to assuage investors concerned about a sustainable recovery.
