By FXEmpire.com

Commodities fell across the board, with oil notching its biggest 5-day loss since October and copper posting its biggest slide in a month as post-election worries in Greece & France sparked broad risk aversion across financial markets.

Gold dropped below $1,600 per ounce in its biggest daily decline in more than 2-months, as escalating fears about Greece’s political crisis continued to weigh on the euro and bullion. Mainland China’s gold imports from Hong Kong surged more than six-fold in the first quarter to 135.53 tons from 19.73 tons in the year-earlier period, as per data from the Census and Statistics Department of Hong Kong government.

Gold holdings of SPDR gold trust, the largest ETF backed by the precious metal, increased to 1,274.99 tons, as on May 7. Silver holdings of iShares silver trust, the largest ETF backed by the metal, increased to 9,585.83 tons, as on May 4. The dollar index, which measures the US unit against a basket of six major, traded at 79.728, down from an earlier high of 79.958, but up from 79.611 in late North American trade Monday. The Greek government taking office has 30-days to decide whether to make today’s interest payment on notes maturing in 2016 or default. Copper & other metals declined, after elections in France and Greece fueled concern that austerity efforts aimed at stemming the region’s debt crisis will be derailed, dimming demand outlook.

Oil prices fell for a fifth day running as Athens’s post-election uncertainty added to signs of economic slowdown on both sides of the Atlantic and fanned concerns about weakening demand for petroleum, as supply grows. Crude oil stocks jumped 7.8mn barrels, Distillate stocks fell 2.7mn barrels and gasoline stocks plunged 5mn barrels, as per API report. Crude oil stocks at Cushing, Oklahoma, the delivery point for West Texas Intermediate crude, rose by 1.2mn barrels.

Iran is accepting payments in Yuan for some of the crude oil it supplies to China, the Iranian ambassador the United Arab Emirates said while India’s crude oil imports from Iran declined by about 34% in April compared to March – Reuters. Saudi Arabia reiterated that is very well equipped to fill any gap between global supply demand thanks both to its ample spare crude-oil output capacity and oil stocks, but suggested that the OPEC Countries could potentially discuss a change to the group members’ output when ministers meet next month.

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Originally posted here