Gold rockets to record high above $1,150
Sunday, 22 November 2009
LONDON, Nov 21 (AFP): Gold prices scaled historic heights above 1,150 dollars per ounce this week, buoyed by the weak greenback and recent central bank purchases of the precious metal, analysts said.
Traders said the dollar's overall weak tone was due to the prospect of US interest rates remaining close to zero for some time yet.
PRECIOUS METALS: Gold hit an all-time peak at $1,152.85 an ounce Wednesday, extending this year's record- breaking run.
"The price of gold moved further north as the dollar's decline continued," said analyst Marius Paun at ODL Markets.
A weak greenback makes dollar-priced assets such as gold cheaper for buyers using stronger currencies, and tends to stimulate demand for them.
"Like all risk assets, (gold) is benefiting from the sliding dollar, but it is also a safe haven for investors who are concerned about the safety of other currencies," added David Morrison at spread-betting firm GFT.
By late Friday on the London Bullion Market, gold rose to $1,140 an ounce from $1,104 a week earlier.
Silver gained to $18.18 an ounce from $17.32.
On the London Platinum and Palladium Market, platinum advanced to $1,435 an ounce at the late fixing on Friday from $1,359 the previous week.
Palladium climbed to $360 an ounce from $354.
OIL: Oil prices rose in a week of volatile trade.
Analysts on Friday said crude futures were likely to stay under $80 because of high oil inventories in the United States, the world's biggest energy- consuming nation, analysts said.
New York crude prices Wednesday breached $80 a barrel after government data showed crude reserves in the United States fell 900,000 barrels in the week ending November 13.
Oil prices slumped Thursday as the dollar rose and owing to renewed doubts about a sustainable global economic recovery, traders said.
An array of largely unimpressive US economic data caused a fall on Wall Street as investors sought safety in the dollar, a traditional safe haven currency in times of distress.
Oil under $78 a barrel was "a buying opportunity," said analyst Victor Shum at the Purvin and Gertz energy consultancy in Singapore.
Crude oil prices soared by $2.50 Monday owing to a weak dollar and data showing that the Japanese economy expanded 1.2 per cent in the July- September period, traders said.
Meanwhile, OPEC president Jose Maria Botelho de Vasconcelos has signalled that 75-80 dollar oil is an adequate level to allow for a global economic recovery.
The Organisation of Petroleum Exporting Countries (OPEC) pumps about 40 per cent of the world's oil.
Also this week, traders followed events in oil-exporter Nigeria, where its main armed group has accused the military of staging a dawn raid on a village in the restive crude-producing region, saying it could threaten peace talks.
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in December firmed to $76.71 from $76.41 a week earlier.
On London's InterContinental Exchange (ICE), Brent North Sea crude for January delivery advanced to $77.03, compared with $75.65 for the December contract last week.
COCOA: Cocoa prices diverged, falling in London but rising in New York.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in December weakened to 2,190 pounds a tonne from 2,022 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract rallied to 3,310 dollars a tonne from 3,117 dollars.
BASE METALS: Base metals prices rose across the board.
By Friday on the London Metal Exchange, copper for delivery in three months rose to 6,804 dollars a tonne from 6,492 dollars a week earlier.
Three-month aluminium firmed to 2,004 dollars a tonne from 1,933 dollars.
Three-month lead increased to 2,340 dollars a tonne from 2,251 dollars.
Three-month tin gained to 14,975 dollars a tonne from 14,680 dollars.
Three-month zinc rose to 2,230 dollars a tonne from 2,165 dollars.
Three-month nickel climbed to 16,840 dollars a tonne from 16,050 dollars.
SUGAR: Sugar prices also struck a mixed note.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March edged up to 601 pounds from 593 pounds a week earlier.
On NYBOT, the price of unrefined sugar for March nudged lower to 22.10 US cents a pound from 22.56 cents.
GRAINS AND SOYA: Grains and soya prices held in positive territory.
By Friday on the Chicago Board of Trade, maize for delivery in March rose to 4.10 dollars a bushel from 4.05 dollars a week earlier.
January-dated soyabean meal-used in animal feed-climbed to 10.41 dollars from 9.87 dollars.
COFFEE: Coffee prices steadied. By Friday on LIFFE, Robusta for delivery in January eased to 1,330 dollars a tonne from 1,331 dollars a week earlier.
On the NYBOT, Arabica for March firmed to 136.50 US cents a pound from 134.50 cents.
RUBBER: Malaysian rubber prices rose due to limited supplies as a result of rainy weather and in line with many other commodity markets.
On Friday, the Malaysian Rubber Board's benchmark SMR20 climbed to 250.30 US cents per kilo, from 241.80 cents last week.
Traders said the dollar's overall weak tone was due to the prospect of US interest rates remaining close to zero for some time yet.
PRECIOUS METALS: Gold hit an all-time peak at $1,152.85 an ounce Wednesday, extending this year's record- breaking run.
"The price of gold moved further north as the dollar's decline continued," said analyst Marius Paun at ODL Markets.
A weak greenback makes dollar-priced assets such as gold cheaper for buyers using stronger currencies, and tends to stimulate demand for them.
"Like all risk assets, (gold) is benefiting from the sliding dollar, but it is also a safe haven for investors who are concerned about the safety of other currencies," added David Morrison at spread-betting firm GFT.
By late Friday on the London Bullion Market, gold rose to $1,140 an ounce from $1,104 a week earlier.
Silver gained to $18.18 an ounce from $17.32.
On the London Platinum and Palladium Market, platinum advanced to $1,435 an ounce at the late fixing on Friday from $1,359 the previous week.
Palladium climbed to $360 an ounce from $354.
OIL: Oil prices rose in a week of volatile trade.
Analysts on Friday said crude futures were likely to stay under $80 because of high oil inventories in the United States, the world's biggest energy- consuming nation, analysts said.
New York crude prices Wednesday breached $80 a barrel after government data showed crude reserves in the United States fell 900,000 barrels in the week ending November 13.
Oil prices slumped Thursday as the dollar rose and owing to renewed doubts about a sustainable global economic recovery, traders said.
An array of largely unimpressive US economic data caused a fall on Wall Street as investors sought safety in the dollar, a traditional safe haven currency in times of distress.
Oil under $78 a barrel was "a buying opportunity," said analyst Victor Shum at the Purvin and Gertz energy consultancy in Singapore.
Crude oil prices soared by $2.50 Monday owing to a weak dollar and data showing that the Japanese economy expanded 1.2 per cent in the July- September period, traders said.
Meanwhile, OPEC president Jose Maria Botelho de Vasconcelos has signalled that 75-80 dollar oil is an adequate level to allow for a global economic recovery.
The Organisation of Petroleum Exporting Countries (OPEC) pumps about 40 per cent of the world's oil.
Also this week, traders followed events in oil-exporter Nigeria, where its main armed group has accused the military of staging a dawn raid on a village in the restive crude-producing region, saying it could threaten peace talks.
By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in December firmed to $76.71 from $76.41 a week earlier.
On London's InterContinental Exchange (ICE), Brent North Sea crude for January delivery advanced to $77.03, compared with $75.65 for the December contract last week.
COCOA: Cocoa prices diverged, falling in London but rising in New York.
By Friday on LIFFE, London's futures exchange, the price of cocoa for delivery in December weakened to 2,190 pounds a tonne from 2,022 pounds a week earlier.
On the New York Board of Trade (NYBOT), the March cocoa contract rallied to 3,310 dollars a tonne from 3,117 dollars.
BASE METALS: Base metals prices rose across the board.
By Friday on the London Metal Exchange, copper for delivery in three months rose to 6,804 dollars a tonne from 6,492 dollars a week earlier.
Three-month aluminium firmed to 2,004 dollars a tonne from 1,933 dollars.
Three-month lead increased to 2,340 dollars a tonne from 2,251 dollars.
Three-month tin gained to 14,975 dollars a tonne from 14,680 dollars.
Three-month zinc rose to 2,230 dollars a tonne from 2,165 dollars.
Three-month nickel climbed to 16,840 dollars a tonne from 16,050 dollars.
SUGAR: Sugar prices also struck a mixed note.
By Friday on LIFFE, the price of a tonne of white sugar for delivery in March edged up to 601 pounds from 593 pounds a week earlier.
On NYBOT, the price of unrefined sugar for March nudged lower to 22.10 US cents a pound from 22.56 cents.
GRAINS AND SOYA: Grains and soya prices held in positive territory.
By Friday on the Chicago Board of Trade, maize for delivery in March rose to 4.10 dollars a bushel from 4.05 dollars a week earlier.
January-dated soyabean meal-used in animal feed-climbed to 10.41 dollars from 9.87 dollars.
COFFEE: Coffee prices steadied. By Friday on LIFFE, Robusta for delivery in January eased to 1,330 dollars a tonne from 1,331 dollars a week earlier.
On the NYBOT, Arabica for March firmed to 136.50 US cents a pound from 134.50 cents.
RUBBER: Malaysian rubber prices rose due to limited supplies as a result of rainy weather and in line with many other commodity markets.
On Friday, the Malaysian Rubber Board's benchmark SMR20 climbed to 250.30 US cents per kilo, from 241.80 cents last week.