LONDON, Jan 12: Gold prices hit fresh record highs above $900 an ounce this week but oil tumbled further from recent historic peaks as markets focused on unease about the weakening US economy.
Elsewhere, Platinum struck an all-time high for the second week running and there were record heights for soya.
OIL: Crude prices slumped this week but remained at elevated levels after recent record highs above $100 a barrel.
Prices fell on widespread fears that slowing economic growth in the United States could dampen demand from the world’s number one oil consumer.
Persistent worries about a potential recession in the US and a slowdown in growth rates put downward pressure on the market, said Sucden analyst Andrey Kryuchenkov.
Investors fear that a slowdown in the US could spread to the broader market and become a drag on the global economy, consequentially denting demand for energy. During the week, prices found limited support from hopes the US Federal Reserve would slash rates to boost the ailing American economy.
Despite heavy price falls, traders warned that there could be another run at $100 owing to persistent geopolitical concerns in crude producers Iran and Nigeria.
Traders’ thoughts are now turning to a production meeting of the OPEC oil producers’ grouping in Vienna next month.
Ministers from the Organisation of Petroleum Exporting Countries, which accounts for about 40 per cent of global crude supplies, will convene in the Austrian capital on February 1.
Top of their agenda will be calls from consumer nations for more supply to after New York oil hit a record $100.09 and Brent $98.50 last week.
On Friday, New York’s main oil futures contract, light sweet crude for delivery in February, was at $93.20, down from $97.25 a week earlier.
Brent North Sea crude for February fell to $91.11 from $96.54.
GOLD/SILVER: The price of gold, for delivery in February, hit an all-time high of $900.10 an ounce in New York as the precious metal benefited from its safe-haven status amid a struggling dollar.
In London on the spot market, the price of gold for immediate delivery reached a record peak of $898.03.
The precious metal, also being supported by increased jewellery purchases in emerging economic powerhouses China and India, had first smashed its 28 year-old record of $850 an ounce the previous week.
The weaker dollar sentiment and the continued influx of investor money kept the metal underpinned, said James Moore of TheBullionDesk.com.
The scale of buying interest that continues to flow into the market, and the fact that dips remain extremely short lived, again suggests gold has plenty of upside work still to do. Silver prices struck a 27-year high of $16.30 an ounce in London as the precious metal also benefited from the weak dollar.
On the London Bullion Market, gold was at $891 at Friday’s late fixing, up from $855 a week earlier.
Silver shot up to $16.06 an ounce from $15.27.
PLATINUM/PALLADIUM: Platinum prices hit a record $1,567.75 an ounce, supported by the weak dollar and tight supplies.
The strong fundamental picture and scale of investment demand coming into the market continues to create a bullish environment in the platinum market and, should further supply disruptions be seen during the course of the year, the white metal could easily reach $1,800-2,000 an ounce, said Moore.
On the London Platinum and Palladium Market, platinum advanced to $1,565 an ounce at the late fixing Friday from $1,545 a week earlier.
BASE METALS: Base metals price mostly retreated from a New Year rally and could be set for further losses.
We have doubts that current price strength will be sustained in an environment of slowing (economic) growth and (with) most metals forecast to move into surplus this year, UBS analyst Robin Bhar said.
On Friday, copper for delivery in three months rose to $7,230 a ton on the London Metal Exchange from $6,930 a week earlier.
Three-month aluminium eased to $2,475 a ton from $2,484.
Three-month nickel fell to $28,050 a ton from $28,500.
Three-month lead dropped to $2,575 a ton from $2,624.
Three-month zinc declined to $2,370 a ton from $2,510.
COCOA: Cocoa prices struck four-year highs in London on supply concerns owing to strike action in leading producer the Ivory Coast.
By Friday on the LIFFE, London’s futures exchange, the price of cocoa for March delivery rose to 1,127 pounds a ton from 1,076 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract increased to $2,170 a ton from $2,101.
COFFEE: Coffee prices struck nine-year peaks in London.
By Friday on the LIFFE, Robusta quality for March delivery climbed to $2,032 a ton from $1,945 a week earlier.
On the NYBOT, Arabica for March delivery gained to 136.75 US cents a pound from 133.30 cents.
SUGAR: Sugar continued to benefit as a source of ethanol, a cheaper biofuel alternative to motor fuel.
By Friday on the LIFFE, the price per ton of white sugar for March delivery rose to 331 pounds from 326 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery rose to 11.54 US cents a pound from 11.30 cents.
GRAINS AND SOYA: Soya rose above $13 for the first time.
By Friday on the Chicago Board of Trade, March-dated soyabean meal — used in animal feed — was at $12.93, up from 12.62.
The price of maize for March delivery gained to $4.95 a bushel from $4.66 a week earlier.
Wheat for March delivery fell to $8.91 a bushel from $9.31.
On LIFFE, the price per ton of wheat for May delivery dropped to 181 pounds from 183 pounds a week earlier.
RUBBER: Rubber prices rose owing to strong demand amid tight supplies in major producer Malaysia.
On Friday, the Malaysian Rubber Board’s benchmark SMR20 rose to 259.00 US cents per kilogramme from 257.70 cents the previous week.—-AFP
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