Gold up as grains jump
Wednesday, 12 December 2007
NEW YORK, Dec 11 (Reuters): Gold prices surged yesterday as commodities investors turned to the precious metal to hedge against a fall in the dollar before an expected cut in US interest rates.
Oil, copper and other industrial metals fell on lingering worries about the American economy, and the impact of a potential recession in the United States on the world.
Agricultural products ended higher, with soybeans touching a 34-year top, corn five-month highs and wheat regaining the $9 a bushel level critical to the confidence of market bulls.
US bonds eased after a surprise increase in pending home sales and the successful raising of cash by a troubled bond insurer removed some flight-to-safety bids.
US gold futures finished near 10-day highs, fueled by the dollar's fall, heavy buying by funds and hedging from credit market woes. In spite of being classified a commodity, gold is increasingly seen as a financial asset these days as investors count on the precious metal to hedge against inflation and direct devaluation in the dollar.
Most-active gold futures for February delivery on the COMEX division of the New York Mercantile Exchange settled up $13.30, or 1.7 per cent, at $813.50 an ounce. During the session, it soared to $818, the strongest price since Nov. 28.
Among industrial metals, copper for March delivery ended New York trade 3.30 cents down at $3.0930 a lb. Copper for delivery in three months on the London Metal Exchange settled down $86 at $6,825 a tonne.
Prices of copper, used widely in construction and industries such as power generation and telecommunications, have been volatile for two months now since hitting their peak for 2007 in New York trade in early Oct.
US crude futures settled down 42 cents to $87.86 a barrel, while London Brent crude fell 60 cents to $88.04 a barrel.
Among agricultural products, soybeans for January delivery on the Chicago Board of Trade closed up 6 cents at $11.25-3/4 per bushel, near 34-year highs.
Oil, copper and other industrial metals fell on lingering worries about the American economy, and the impact of a potential recession in the United States on the world.
Agricultural products ended higher, with soybeans touching a 34-year top, corn five-month highs and wheat regaining the $9 a bushel level critical to the confidence of market bulls.
US bonds eased after a surprise increase in pending home sales and the successful raising of cash by a troubled bond insurer removed some flight-to-safety bids.
US gold futures finished near 10-day highs, fueled by the dollar's fall, heavy buying by funds and hedging from credit market woes. In spite of being classified a commodity, gold is increasingly seen as a financial asset these days as investors count on the precious metal to hedge against inflation and direct devaluation in the dollar.
Most-active gold futures for February delivery on the COMEX division of the New York Mercantile Exchange settled up $13.30, or 1.7 per cent, at $813.50 an ounce. During the session, it soared to $818, the strongest price since Nov. 28.
Among industrial metals, copper for March delivery ended New York trade 3.30 cents down at $3.0930 a lb. Copper for delivery in three months on the London Metal Exchange settled down $86 at $6,825 a tonne.
Prices of copper, used widely in construction and industries such as power generation and telecommunications, have been volatile for two months now since hitting their peak for 2007 in New York trade in early Oct.
US crude futures settled down 42 cents to $87.86 a barrel, while London Brent crude fell 60 cents to $88.04 a barrel.
Among agricultural products, soybeans for January delivery on the Chicago Board of Trade closed up 6 cents at $11.25-3/4 per bushel, near 34-year highs.