Commodity prices from gold to oil, aluminium to iron ore are tumbling.
The financial markets have shifted their focus from the eurozone and its Greek woes, to the current China’s stock market debacle and tumbling commodity prices.
Gold, crude oil and industrial metals like copper have taken a knock in recent days .
On Monday 20th July 2015, gold prices suffered a mini “flash crash”. It suddenly plunged 3.8%, or $43, to $1087 an ounce. Gold is now trading at its lowest level seen since March 2010.
The drop in gold value were replicated across the precious metals field, with platinum and palladium seeing lower prices by 5% and 3% respectively.
What commodities are on the move and what are their usages?
Gold: Primarily used in jewellery and as a financial instrument, such as gold bars in central bank vaults, gold is in demand from electronics companies and for medical uses such as dentistry.
Brent Crude: Refined into petrol and diesel, Brent crude is used in financial markets as a benchmark against which a large proportion of internationally traded crude oils are priced. It is trading at just under $55 a barrel, from a high of $115 hit a year ago.
Platinum: Used for jewellery and by the automotive industry for making catalytic converters. Platinum prices is now at a six year low.
Aluminium: Uses are wide ranging - from food and drink packaging, aeroplanes, construction and even the Rio 2016 Olympic torch.
Copper: Used in everything from electrical wiring to pipe work and coins, and in alloys.
Iron Ore is the main ingredient in steel.
Source: The Guardian