Gold price charges towards record high
Sunday, 20 September 2009
LONDON, Sept 19 (AFP): Gold prices jumped this week to within grasp of record highs above 1,000 dollars per ounce on the back of a weak dollar and mounting economic optimism, while oil prices also edged higher.
The euro hit 1.4767 dollars on Thursday, a level last seen on September 25, 2008, as investors opted for riskier assets in the search for better returns amid growing economic recovery hopes, dealers said.
A weaker dollar makes dollar-priced commodities cheaper for holders of stronger currencies and tends to stimulate demand-and prices.
PRECIOUS METALS: Gold hit 1,024.28 dollars an ounce on Thursday-the best level since March 2008 when it struck a record 1,032.70 dollars.
Gold is being pushed up by two main trends-a fall in the value of the US currency as a result of rising economic confidence among some investors, and a desire among other investors to find a safe haven in still troubled waters.
Gold is also seen as a safe bet for investors to guard against inflation, which is of growing concern following trillions of dollars in borrowing by governments and unorthodox measures including the printing of new money.
Economic optimism was boosted on Tuesday when US Federal Reserve chairman Ben Bernanke suggested the US recession could finally be over, prompting traders to buy riskier currencies such as the euro instead of the safer dollar.
A jump in US retail sales and steady commodity markets further helped reduce the appeal of the dollar.
In the wake of gold, silver hit a 13-month high of 17.66 dollars an ounce.
By late Friday on the London Bullion Market, gold was higher at 1,012 dollars an ounce from 1,008.25 dollars a week earlier.
Silver climbed to 17.11 dollars an ounce from 16.89 dollars.
On the London Platinum and Palladium Market, platinum advanced to 1,337 dollars an ounce at the late fixing on Friday from 1,292 dollars.
Palladium rose to 304 dollars an ounce from 292 dollars.
BASE METALS: Base metals prices diverged in subdued trade.
By Friday on the London Metal Exchange, copper for delivery in three months eased to 6,220 dollars a tonne from 6,341 dollars a week earlier.
Three-month aluminium rose to 1,929 dollars a tonne from 1,849 dollars.
Three-month lead firmed to 2,195 dollars a tonne from 2,167 dollars.
Three-month tin increased to 14,600 dollars a tonne from 14,500 dollars.
Three-month zinc slipped to 1,923 dollars a tonne from 1,929 dollars.
Three-month nickel eased to 17,165 dollars a tonne from 17,400 dollars.
OIL: Crude futures advanced this week owing to a weak dollar, strong equity markets, global recovery hopes and falling US crude inventories.
US Federal Reserve Chairman Ben Bernanke said the American economy-a major consumer of raw materials-had turned a corner but cautioned that the pace of growth remained weak.
Global equity markets posted substantial gains during the week as investors grew more optimistic about recovery prospects. Analysts also said that a sharper-than-expected drop in US crude stockpiles was seen as an indication that demand was improving in the world's biggest energy user.
US crude stocks dropped 4.7 million barrels in the week to September 11, beating analyst forecasts for an average decline of 2.5 million barrels.
The sharper-than-expected drop was seen as an indication that US oil demand was improving but some analysts cautioned that stockpiles remained huge and prices had not touched June highs.
The global economic downturn had sapped demand for energy, dragging crude prices from record highs of above 147 dollars in July 2008 to 32.40 dollars in December. They have since won back some ground to stand close to 70 dollars.
By Friday on London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in November rallied to 71.25 dollars a barrel from 69.80 dollars a week earlier for the October contract.
On the New York Mercantile Exchange (NYMEX), light sweet crude for October firmed to 72.07 dollars from 71.98 dollars.
COCOA: Cocoa prices struck more multi-month highs in both London and New York on the back of speculative buying and reports of a dramatic reduction in forecasts for crops from key producer Ivory Coast.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in December jumped to 2,019 pounds a tonne from 1,948 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December cocoa contract increased to 3,126 dollars a tonne from 3,089 dollars.
SUGAR: Sugar futures were narrowly mixed in subdued trade after punching 28-year highs earlier this month. The market is predicted to find support from keen demand in major consumer India.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in December rose to 582 pounds from 580 pounds a week earlier.
On NYBOT, the price of unrefined sugar for March eased to 23.67 US cents a pound from 23.70 cents.
GRAINS AND SOYA: Maize and soya prices climbed while wheat prices dipped as traders tracked prevailing weather conditions in key producing nations.
By Friday on the Chicago Board of Trade, maize for delivery in December rose to 3.25 dollars a bushel from 3.19 dollars a week earlier.
November-dated soyabean meal-used in animal feed-increased to 9.55 dollars from 9.03 dollars.
Wheat for December fell to 4.61 dollars a bushel from 4.67 dollars.
COFFEE: Coffee futures gained ground.
By Friday on LIFFE, Robusta for delivery in November climbed to 1,508 dollars a tonne from 1,494 dollars a week earlier.
On the NYBOT, Arabica for December rose to 136.65 US cents a pound from 126.90 cents.
RUBBER: Malaysian rubber prices dropped this week due to a technical correction and with many traders away for the upcoming Eid al-Fitr holiday, dealers said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 209.70 US cents per kilo from 211.80 cents last week.
The euro hit 1.4767 dollars on Thursday, a level last seen on September 25, 2008, as investors opted for riskier assets in the search for better returns amid growing economic recovery hopes, dealers said.
A weaker dollar makes dollar-priced commodities cheaper for holders of stronger currencies and tends to stimulate demand-and prices.
PRECIOUS METALS: Gold hit 1,024.28 dollars an ounce on Thursday-the best level since March 2008 when it struck a record 1,032.70 dollars.
Gold is being pushed up by two main trends-a fall in the value of the US currency as a result of rising economic confidence among some investors, and a desire among other investors to find a safe haven in still troubled waters.
Gold is also seen as a safe bet for investors to guard against inflation, which is of growing concern following trillions of dollars in borrowing by governments and unorthodox measures including the printing of new money.
Economic optimism was boosted on Tuesday when US Federal Reserve chairman Ben Bernanke suggested the US recession could finally be over, prompting traders to buy riskier currencies such as the euro instead of the safer dollar.
A jump in US retail sales and steady commodity markets further helped reduce the appeal of the dollar.
In the wake of gold, silver hit a 13-month high of 17.66 dollars an ounce.
By late Friday on the London Bullion Market, gold was higher at 1,012 dollars an ounce from 1,008.25 dollars a week earlier.
Silver climbed to 17.11 dollars an ounce from 16.89 dollars.
On the London Platinum and Palladium Market, platinum advanced to 1,337 dollars an ounce at the late fixing on Friday from 1,292 dollars.
Palladium rose to 304 dollars an ounce from 292 dollars.
BASE METALS: Base metals prices diverged in subdued trade.
By Friday on the London Metal Exchange, copper for delivery in three months eased to 6,220 dollars a tonne from 6,341 dollars a week earlier.
Three-month aluminium rose to 1,929 dollars a tonne from 1,849 dollars.
Three-month lead firmed to 2,195 dollars a tonne from 2,167 dollars.
Three-month tin increased to 14,600 dollars a tonne from 14,500 dollars.
Three-month zinc slipped to 1,923 dollars a tonne from 1,929 dollars.
Three-month nickel eased to 17,165 dollars a tonne from 17,400 dollars.
OIL: Crude futures advanced this week owing to a weak dollar, strong equity markets, global recovery hopes and falling US crude inventories.
US Federal Reserve Chairman Ben Bernanke said the American economy-a major consumer of raw materials-had turned a corner but cautioned that the pace of growth remained weak.
Global equity markets posted substantial gains during the week as investors grew more optimistic about recovery prospects. Analysts also said that a sharper-than-expected drop in US crude stockpiles was seen as an indication that demand was improving in the world's biggest energy user.
US crude stocks dropped 4.7 million barrels in the week to September 11, beating analyst forecasts for an average decline of 2.5 million barrels.
The sharper-than-expected drop was seen as an indication that US oil demand was improving but some analysts cautioned that stockpiles remained huge and prices had not touched June highs.
The global economic downturn had sapped demand for energy, dragging crude prices from record highs of above 147 dollars in July 2008 to 32.40 dollars in December. They have since won back some ground to stand close to 70 dollars.
By Friday on London's InterContinental Exchange (ICE), Brent North Sea crude for delivery in November rallied to 71.25 dollars a barrel from 69.80 dollars a week earlier for the October contract.
On the New York Mercantile Exchange (NYMEX), light sweet crude for October firmed to 72.07 dollars from 71.98 dollars.
COCOA: Cocoa prices struck more multi-month highs in both London and New York on the back of speculative buying and reports of a dramatic reduction in forecasts for crops from key producer Ivory Coast.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in December jumped to 2,019 pounds a tonne from 1,948 pounds a week earlier.
On the New York Board of Trade (NYBOT), the December cocoa contract increased to 3,126 dollars a tonne from 3,089 dollars.
SUGAR: Sugar futures were narrowly mixed in subdued trade after punching 28-year highs earlier this month. The market is predicted to find support from keen demand in major consumer India.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in December rose to 582 pounds from 580 pounds a week earlier.
On NYBOT, the price of unrefined sugar for March eased to 23.67 US cents a pound from 23.70 cents.
GRAINS AND SOYA: Maize and soya prices climbed while wheat prices dipped as traders tracked prevailing weather conditions in key producing nations.
By Friday on the Chicago Board of Trade, maize for delivery in December rose to 3.25 dollars a bushel from 3.19 dollars a week earlier.
November-dated soyabean meal-used in animal feed-increased to 9.55 dollars from 9.03 dollars.
Wheat for December fell to 4.61 dollars a bushel from 4.67 dollars.
COFFEE: Coffee futures gained ground.
By Friday on LIFFE, Robusta for delivery in November climbed to 1,508 dollars a tonne from 1,494 dollars a week earlier.
On the NYBOT, Arabica for December rose to 136.65 US cents a pound from 126.90 cents.
RUBBER: Malaysian rubber prices dropped this week due to a technical correction and with many traders away for the upcoming Eid al-Fitr holiday, dealers said.
On Friday, the Malaysian Rubber Board's benchmark SMR20 fell to 209.70 US cents per kilo from 211.80 cents last week.