Gold, oil prices blast new highs before tumbling
Sunday, 23 March 2008
LONDON, March 22 (AFP): Gold and oil prices scored fresh lifetime peaks this week as investors snapped up commodities in favour of the weak dollar and sought safety from falling equity markets.
Oil approached 112 dollars per barrel and gold rocketed beyond 1,030 dollars an ounce on Monday.
However, prices then hit reverse gear as market sentiment turned sour amid profit-taking and resurgent demand concerns.
OIL: New York's light sweet crude jumped to a record high 111.80 dollars per barrel on Monday, before demand fears sent prices reeling back under 100 dollars during trading on Thursday. Prices later edged slightly higher.
Prices soared Monday as the plunging US dollar hit an all- time low against the euro. The weak US currency encourages demand for dollar-priced commodities because they become cheaper for buyers using stronger currencies.
But oil prices closed sharply lower on Monday as traders feared that rising financial markets turmoil could damage the outlook for oil.
GOLD AND SILVER: Gold leapt to a record high 1,032.70 dollars on Monday before heading lower as traders banked gains.
"Deepening woes in the global financial system triggered rampant safe- haven buying of gold and silver, with gold testing above 1,030 dollars per ounce," said James Moore, an analyst at TheBullionDesk.com.
Towards the end of the week, however, gold plunged in value as traders fretted over long-term demand.
PLATINUM: Platinum prices sank, but analysts predicted that the white metal would rebound on supply concerns.
On the London Platinum and Palladium Market, platinum fell to 1,823 dollars per ounce at the late fixing on Thursday, from 2,107 dollars on Friday of the previous week. Palladium slid to 430 dollars per ounce from 512 dollars.
BASE METALS: Base metals fell across the board as traders also fretted over slowing economic growth dampening demand, traders said.
Three-month aluminium fell to 2,920 dollars per tonne from 3,156 dollars. Three-month nickel dropped to 29,300 dollars per tonne from 32,850 dollars. Three-month lead dived to 2,835 dollars per tonne from 3,101 dollars. Three-month zinc slid to 2,410 dollars per tonne from 2,608 dollars.
GRAINS AND SOYA: Prices beat a retreat on profit-taking, in line with other commodity markets.
By Thursday on the Chicago Board of Trade, wheat for May delivery had fallen to 10.45 dollars per bushel from 11.91 dollars on Friday of the previous week.
May-dated soyabean meal-used in animal feed-sank to 12.21 dollars from 13.52 dollars.
The price of maize for May delivery slipped to 5.14 dollars per bushel from 5.59 dollars.
On LIFFE, London's futures exchange, the price per tonne of wheat for November delivery fell to 151 pounds from 160.50 pounds.
COCOA: Cocoa prices fell sharply as investment funds took profits. By Thursday on LIFFE, the price of cocoa for May delivery declined to 1,301 pounds per tonne from 1,473 pounds on Friday of the previous week.
On the New York Board of Trade (NYBOT), the May cocoa contract slid to 2,311 dollars per tonne from 2,879 dollars.
COFFEE: Coffee prices also weakened.
By Thursday on LIFFE, Robusta for May delivery had tumbled to 2,270 dollars per tonne from 2,673 dollars on Friday of the previous week.
On the NYBOT, Arabica for May delivery dived to 129.25 US cents per pound from 151.45 cents.
SUGAR: Sugar prices dipped. By Thursday on LIFFE, the price per tonne of white sugar for May delivery slipped to 325.50 pounds, from 355 pounds on Friday of the previous week. On NYBOT, the price of unrefined sugar for May delivery fell to 11.90 US cents per pound from 13.34 cents.
Oil approached 112 dollars per barrel and gold rocketed beyond 1,030 dollars an ounce on Monday.
However, prices then hit reverse gear as market sentiment turned sour amid profit-taking and resurgent demand concerns.
OIL: New York's light sweet crude jumped to a record high 111.80 dollars per barrel on Monday, before demand fears sent prices reeling back under 100 dollars during trading on Thursday. Prices later edged slightly higher.
Prices soared Monday as the plunging US dollar hit an all- time low against the euro. The weak US currency encourages demand for dollar-priced commodities because they become cheaper for buyers using stronger currencies.
But oil prices closed sharply lower on Monday as traders feared that rising financial markets turmoil could damage the outlook for oil.
GOLD AND SILVER: Gold leapt to a record high 1,032.70 dollars on Monday before heading lower as traders banked gains.
"Deepening woes in the global financial system triggered rampant safe- haven buying of gold and silver, with gold testing above 1,030 dollars per ounce," said James Moore, an analyst at TheBullionDesk.com.
Towards the end of the week, however, gold plunged in value as traders fretted over long-term demand.
PLATINUM: Platinum prices sank, but analysts predicted that the white metal would rebound on supply concerns.
On the London Platinum and Palladium Market, platinum fell to 1,823 dollars per ounce at the late fixing on Thursday, from 2,107 dollars on Friday of the previous week. Palladium slid to 430 dollars per ounce from 512 dollars.
BASE METALS: Base metals fell across the board as traders also fretted over slowing economic growth dampening demand, traders said.
Three-month aluminium fell to 2,920 dollars per tonne from 3,156 dollars. Three-month nickel dropped to 29,300 dollars per tonne from 32,850 dollars. Three-month lead dived to 2,835 dollars per tonne from 3,101 dollars. Three-month zinc slid to 2,410 dollars per tonne from 2,608 dollars.
GRAINS AND SOYA: Prices beat a retreat on profit-taking, in line with other commodity markets.
By Thursday on the Chicago Board of Trade, wheat for May delivery had fallen to 10.45 dollars per bushel from 11.91 dollars on Friday of the previous week.
May-dated soyabean meal-used in animal feed-sank to 12.21 dollars from 13.52 dollars.
The price of maize for May delivery slipped to 5.14 dollars per bushel from 5.59 dollars.
On LIFFE, London's futures exchange, the price per tonne of wheat for November delivery fell to 151 pounds from 160.50 pounds.
COCOA: Cocoa prices fell sharply as investment funds took profits. By Thursday on LIFFE, the price of cocoa for May delivery declined to 1,301 pounds per tonne from 1,473 pounds on Friday of the previous week.
On the New York Board of Trade (NYBOT), the May cocoa contract slid to 2,311 dollars per tonne from 2,879 dollars.
COFFEE: Coffee prices also weakened.
By Thursday on LIFFE, Robusta for May delivery had tumbled to 2,270 dollars per tonne from 2,673 dollars on Friday of the previous week.
On the NYBOT, Arabica for May delivery dived to 129.25 US cents per pound from 151.45 cents.
SUGAR: Sugar prices dipped. By Thursday on LIFFE, the price per tonne of white sugar for May delivery slipped to 325.50 pounds, from 355 pounds on Friday of the previous week. On NYBOT, the price of unrefined sugar for May delivery fell to 11.90 US cents per pound from 13.34 cents.