Gold drops 1.7%; oil falls to below $93

New York (Sept 2)  Gold futures fell to the lowest since June as U.S. manufacturing in August expanded at the fastest pace in three years, bolstering prospects for the economy and damping demand for the metal.

Gold futures for December delivery dropped 1.7 percent to settle at $1,265 an ounce at 1:42 p.m. on the Comex in New York, the biggest decline for a most-active contract since July 14. Earlier, the price touched $1,263.10, the lowest since June 17.

A gauge of manufacturing orders increased by the most in a decade, Institute for Supply Management data showed today.

In other metals, Silver futures for December delivery fell 1.7 percent to $19.152 an ounce. The price touched $19.11, the lowest since June 10.

Palladium futures for December delivery dropped 2.9 percent to $883.25 an ounce, the biggest decline since June 12. The price touched $913, the highest since February 2001.

Platinum futures for October delivery fell 1.1 percent to $1,408.90 an ounce, the biggest drop since July 31.

In energy markets, Brent crude oil futures fell to the lowest level in 15 months today, pressured by the prospect of slowing oil demand growth in China and Europe, while a strong dollar and ample supplies weighed on U.S. prices.

Brent crude for October delivery fell $2.08 to $100.71 a barrel by 1:27 p.m. EDT (1727 GMT), after earlier hitting $100.43, the lowest since May 31, 2013.

U.S. crude dropped 3 percent from August 29 close to $92.96 a barrel at 3:05 p.m. There was no trading in the United States yesterday because of the Labor Day holiday.

Source: ProactiveInvestors