Silver, Gold & Oil Gain as U.S. Stocks Erase Early Advance

London (Nov 30)  Rallies in silver, gold and oil helped commodities snap a three-day retreat while the Standard & Poor’s 500 Index erased an early advance and trimmed its eighth straight weekly gain, the longest streak since 2004. The British pound touched a two-year high versus the dollar.

The S&P GSCI Index of 24 commodities increased 0.2 percent as silver, gold and crude oil advanced at least 1 percent and copper added 0.5 percent. The S&P 500 fell 0.1 percent at 1 p.m. New York time as U.S. markets closed early following the Thanksgiving holiday. The yield on 10-year Treasury notes increased one basis points to 2.74 percent, while Dutch rates were little changed after S&P stripped the Netherlands of its AAA rating. Norway’s krone slid versus 15 of its 16 major peers as unemployment increased. The pound rose as high as $1.6384, the strongest since August 2011. 

Shares worldwide capped a third consecutive monthly advance as central banks maintain monetary policies designed to boost growth. Consumer-price gains in the euro area quickened this month and unemployment in the region declined in October, data today showed. Retailers led U.S. stocks higher in early trading amid optimism about holiday sales. A gauge of Chinese manufacturing due Dec. 1 is forecast to show expansion.

“We continued to see Chinese demand move higher and tighten up the markets,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “The U.S. will be an important source of imports for Chinese manufactured goods.” 

Silver for immediate delivery increased 1.4 percent to $20.0046 an ounce in London trading, gaining for a second day. Platinum rose 0.2 percent to $1,365.25 an ounce. Copper for delivery in three months rose 0.5 percent to $7,055 a metric ton on the London Metal Exchange.