Commodities Drop Most in Three Weeks on Greek Bailout Concern
The Standard & Poor’s GSCI Index of 24 commodities tumbled the most in three weeks, led by declines in gold, copper and crude oil, on concern that a Greek bailout plan was may unravel.
The index slipped 1 percent to 673.91 as of 1:28 p.m. New York, the steepest decline since Jan. 20, after Luxembourg Prime Minister Jean-Claude Juncker, chairman of the group of euro-area finance chiefs, said Greece won’t get financial aid until it implements an austerity plan.
“It’s just negative news,” said Dan Flynn, a trader at PFGBest in Chicago. “The market’s looking at what’s going on in Greece and saying it’s a negative. It’s just a bad Friday.”
Gold futures for April delivery dropped 0.9 percent to $1,725.30 an ounce on the Comex in New York. The contract has climbed 9.9 percent this year.
Copper futures for March delivery fell 11.65 cents, or 2.9 percent, to $3.862 a pound on the Comex, heading for the biggest decline since Dec. 14.
Crude oil for March delivery declined $1.23, or 1.2 percent, to $98.61 a barrel on the New York Mercantile Exchange, the steepest decline since Feb. 2. Futures have dropped 0.2 percent this year.
Gasoline for March delivery fell 4.23 cents, or 1.4 percent, to $2.9705 a gallon in New York, the biggest drop since Jan. 30.
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