Gold spiked to another all-time high this week as slumping global stock markets sent investors fleeing for the safe-haven precious metal while industrial commodities dived on the back of a weak demand outlook.
World equities took another beating on Friday but after massive losses there were some signs of stabilization as investors tentatively looked for bargains.
Investment bank Morgan Stanley on Thursday warned that the US and Europe stood dangerously close to recession and that growth in the big emerging economies would be slower than expected.
Photo: EPA
“Our revised forecasts show the US and the euro area hovering dangerously close to a recession — defined as two consecutive quarters of contraction — over the next six to 12 months,” it said in a report.
Morgan Stanley cut its global economic growth forecast to 3.9 percent this year from the previous 4.2 percent, and to 3.8 percent from 4.2 percent next year, mainly because of the stagnation in advanced economies.
Gold hit a record US$1,878.15 an ounce on Friday as recession fears mounted.
“With the gold price again reaching a record high ... and with economic woes seeming to carry on for the foreseeable future, the outlook for gold, in its natural safe-haven mode, is strong,” said Austin Kiddle at bullion broker Sharps Pixley.
Gold is regarded by investors as a safe place to park cash in times of economic uncertainty.
Meanwhile, the London-based World Gold Council (WGC) forecast gold would see sustained demand from key markets India and China this year, despite high prices.
Global demand for the second quarter to June was 919.8 tonnes, down 17 percent year-on-year, from 1,107 tonnes in the same period last year, as the “remarkably” high European investment seen earlier leveled off.
The June-end quarter this year was the second-highest quarterly value ever at US$44.5 billion, the WGC added in a report.
By late Friday on the London Bullion Market, gold had jumped to US$1,848 an ounce from US$1,736 the previous week.
Silver advanced to US$41.98 an ounce from US$38.29.
On the London Platinum and Palladium Market, platinum rose to US$1,855 an ounce from US$1,800.
Palladium climbed to US$750 an ounce from US$747.
OIL: World oil prices fell sharply as a new global recession risks reducing demand for energy but then clawed back some lost territory heading into the weekend.
London Brent sank as low as US$105.06 per barrel and New York hit US$79.17 on Friday before both contracts rebounded somewhat.
“We are seeing a very diminished demand picture,” oil specialist John Kilduff at Again Capital said.
“You’re seeing a considerable shift away from the outlook that the economy is going to grow in the second half and next year,” Kilduff added.
The growth picture was also hurt by poor to outright gloomy US data on jobs, inflation, housing sales and regional manufacturing released on Thursday.
By late on Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in October stood at US$108.51 a barrel, after US$108.48 a week earlier.
BASE METALS: Base or industrial metals sank markedly on the back of spreading fears of another vicious global downturn.
By late Friday on the London Metal Exchange (LME), copper for delivery in three months sank to US$8,837 a tonne from US$8,886 the previous week.
Three-month aluminium fell to US$2,358 a tonne from US$2,421.
Three-month lead dipped to US$2,310.25 a tonne from US$2,390. Three-month tin decreased to US$23,000 a tonne from US$24,600. Three-month zinc slid to US$2,190.75 a tonne from US$2,195. Three-month nickel dropped to US$21,339 a tonne from US$21,690.
COCOA: The cocoa market gained ground as traders eyed weather worries in leading producer Ivory Coast.
By Friday on LIFFE, London’s futures exchange, cocoa for delivery in December advanced to £1,892 a tonne from £1,849 the previous week.
Prices hit one-month highs, partly on hopes of rising demand from Asian powerhouse China.
SUGAR: By Friday on NYBOT-ICE, the price of unrefined sugar for delivery in October advanced to 28.91 US cents a pound from 27.63 US cents the previous week.
COFFEE: Coffee futures also hit one-month peaks, before trimming gains slightly.
By Friday on NYBOT-ICE, Arabica for delivery in December stood at 267 US cents a pound, up from 240.75 US cents the previous week.
On LIFFE, Robusta for November changed hands at US$2,321 a tonne after US$2,253 a tonne.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day