The price of gold has surpassed the $1,700 mark for the first time as investors look for a secure asset for their money, following the downgrading of US debt.
Gold is the only metal that has risen since the news. Copper fell almost $1,000 per tonne from $9,675 last week down to $8,736 on the LME. But nickel and tin were the biggest losers, dropping $3,152 per tonne and $5,101 per tonne respectively against the previously week.
The price of oil has also fallen as observers wait to see if energy demand slows in the US or China. According to Reuters, Brent North Sea crude oil dropped to February levels of $98.74 a barrel, then strengthened to $101.65 a barrel, but the price remains $2.09 less than at the beginning of the week. However, scrap metal traders do not think the ease in fuel prices will have much effect on the global export market.
Within the Eurozone, Italy and Spain have also come under pressure recently regarding their debt.