Gold price strikes record high, oil slides
Sunday, 16 May 2010
LONDON, May 15 (BSS): Gold prices smashed their way to fresh record highs close to 1,250 dollars this week, with demand driven by investors seeking shelter from the eurozone debt crisis, analysts said.
Oil prices tumbled however as a strengthening dollar made the raw material more expensive for holders of other currencies.
PRECIOUS METALS: Gold soared to 1,249.40 dollars an ounce Friday on the London Bullion Market. Gold's surge dragged sister metal silver to a two- year high of 19.64 dollars an ounce.
Heightened concerns about the risk of contagion from Greece's debt woes have attracted fresh inflows of cash into gold, which is widely regarded as a safe bet in times of economic uncertainty.
Markets were buoyed Monday after the European Union and the International Monetary Fund gave their backing to a 750- billion-euro rescue plan for crisis-hit euro countries aimed at limiting the fallout from Greece.
By late Friday on the London Bullion Market, gold climbed to 1,236.50 dollars an ounce from 1,202.50 dollars the previous week.
Silver surged to 19.64 dollars dollars an ounce from 17.70 dollars.
On the London Platinum and Palladium Market, platinum rallied to 1,721 dollars an ounce from 1,651 dollars.
Palladium grew to 536 dollars an ounce from 505 dollars.
OIL: Oil prices tumbled further this week, hit by stubborn eurozone economic concerns, a strong dollar and high US crude stockpiles, traders said.
The market began the week on a bright note, soaring Monday after a one-trillion-dollar EU-IMF eurozone rescue plan eased market concerns over the eurozone financial crisis.
Meanwhile, the US government's Department of Energy revealed Wednesday that American crude stockpiles had risen by 1.9 million barrels last week, more than double the amount forecast by analysts.
Worldwide oil demand is projected at 86.4 million barrels a day this year, up 1.9 per cent from 2009 but 220,000 barrels a day below the previous IEA estimate.
BASE METALS: Base metals prices mostly fell.
By Friday on the London Metal Exchange, copper for delivery in three months rose to 6,908 dollars a tonne from 6,891 dollars a week earlier.
Three-month aluminium inched up to 2,093 dollars a tonne from 2,090 dollars. Three-month lead fell to 1,950 dollars a tonne from 1,999 dollars. Three-month tin dipped to 17,500 dollars a tonne from 17,575 dollars. Three-month zinc slipped to 2,050 dollars a tonne from 2,089 dollars. Three-month nickel slid to 21,650 dollars a tonne from 22,232 dollars.
GRAINS AND SOYA: Maize, soyabean and wheat prices all fell.
By Friday on the Chicago Board of Trade, maize for delivery in July eased to 3.64 dollars a bushel from 3.72 dollars the previous week.
July-dated soyabean meal-used in animal feed-dropped to 9.56 dollars from 9.60 dollars. Wheat for July slid to 4.74 dollars a bushel from 5.10 dollars.
COCOA: Cocoa prices fell, one week after striking a record high 2,430 dollars a tonne on keen investment fund buying.
By Friday on LIFFE, the price of cocoa for delivery in July fell to 2,232 pounds a tonne from 2,368 pounds the previous week.
On the NYBOT, the July cocoa contract decreased to 2,858 dollars a tonne from 3,042 dollars.
COFFEE: Coffee prices rose on lingering concerns over tight supplies.
By Friday on LIFFE, Robusta for delivery in July rose to 1,392 dollars a tonne from 1,358 dollars the previous week.
On the NYBOT, Arabica for July gained to 136.25 US cents a pound from 132.30 cents.
SUGAR: Sugar prices recovered after hitting one-year lows a week earlier.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for delivery in July climbed to 14.88 US cents a pound from 13.64 cents the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for August increased to 470 pounds from 435.80 pounds.
RUBBER: Malaysian rubber prices fell on slack local demand, dealers said.
The Malaysian Rubber Board's benchmark SMR20 dropped to 282.95 US cents a kilo from 291.85 cents the previous week.
Oil prices tumbled however as a strengthening dollar made the raw material more expensive for holders of other currencies.
PRECIOUS METALS: Gold soared to 1,249.40 dollars an ounce Friday on the London Bullion Market. Gold's surge dragged sister metal silver to a two- year high of 19.64 dollars an ounce.
Heightened concerns about the risk of contagion from Greece's debt woes have attracted fresh inflows of cash into gold, which is widely regarded as a safe bet in times of economic uncertainty.
Markets were buoyed Monday after the European Union and the International Monetary Fund gave their backing to a 750- billion-euro rescue plan for crisis-hit euro countries aimed at limiting the fallout from Greece.
By late Friday on the London Bullion Market, gold climbed to 1,236.50 dollars an ounce from 1,202.50 dollars the previous week.
Silver surged to 19.64 dollars dollars an ounce from 17.70 dollars.
On the London Platinum and Palladium Market, platinum rallied to 1,721 dollars an ounce from 1,651 dollars.
Palladium grew to 536 dollars an ounce from 505 dollars.
OIL: Oil prices tumbled further this week, hit by stubborn eurozone economic concerns, a strong dollar and high US crude stockpiles, traders said.
The market began the week on a bright note, soaring Monday after a one-trillion-dollar EU-IMF eurozone rescue plan eased market concerns over the eurozone financial crisis.
Meanwhile, the US government's Department of Energy revealed Wednesday that American crude stockpiles had risen by 1.9 million barrels last week, more than double the amount forecast by analysts.
Worldwide oil demand is projected at 86.4 million barrels a day this year, up 1.9 per cent from 2009 but 220,000 barrels a day below the previous IEA estimate.
BASE METALS: Base metals prices mostly fell.
By Friday on the London Metal Exchange, copper for delivery in three months rose to 6,908 dollars a tonne from 6,891 dollars a week earlier.
Three-month aluminium inched up to 2,093 dollars a tonne from 2,090 dollars. Three-month lead fell to 1,950 dollars a tonne from 1,999 dollars. Three-month tin dipped to 17,500 dollars a tonne from 17,575 dollars. Three-month zinc slipped to 2,050 dollars a tonne from 2,089 dollars. Three-month nickel slid to 21,650 dollars a tonne from 22,232 dollars.
GRAINS AND SOYA: Maize, soyabean and wheat prices all fell.
By Friday on the Chicago Board of Trade, maize for delivery in July eased to 3.64 dollars a bushel from 3.72 dollars the previous week.
July-dated soyabean meal-used in animal feed-dropped to 9.56 dollars from 9.60 dollars. Wheat for July slid to 4.74 dollars a bushel from 5.10 dollars.
COCOA: Cocoa prices fell, one week after striking a record high 2,430 dollars a tonne on keen investment fund buying.
By Friday on LIFFE, the price of cocoa for delivery in July fell to 2,232 pounds a tonne from 2,368 pounds the previous week.
On the NYBOT, the July cocoa contract decreased to 2,858 dollars a tonne from 3,042 dollars.
COFFEE: Coffee prices rose on lingering concerns over tight supplies.
By Friday on LIFFE, Robusta for delivery in July rose to 1,392 dollars a tonne from 1,358 dollars the previous week.
On the NYBOT, Arabica for July gained to 136.25 US cents a pound from 132.30 cents.
SUGAR: Sugar prices recovered after hitting one-year lows a week earlier.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for delivery in July climbed to 14.88 US cents a pound from 13.64 cents the previous week.
On LIFFE, London's futures exchange, the price of a tonne of white sugar for August increased to 470 pounds from 435.80 pounds.
RUBBER: Malaysian rubber prices fell on slack local demand, dealers said.
The Malaysian Rubber Board's benchmark SMR20 dropped to 282.95 US cents a kilo from 291.85 cents the previous week.