Gold surpassed US$1,900 an ounce for the first time this week as investors continued to snap up the safe-haven investment on growth concerns, while oil gained thanks to an unclear outlook for Libyan crude output. After strong gains for commodities at the start of the week, profit-taking set in ahead of a keenly awaited speech on the economy by US Federal Reserve Chairman Ben Bernanke.
However, prices headed higher once more as Bernanke offered up no new economic stimulus measures for the struggling US economy, reigniting investor concerns about the recovery. Instead, Bernanke said he expected US growth in the second half of the year to improve after a first half in which expansion was nearly stagnant.
His optimistic outlook however came as official data showed the US economy grew less than initially thought in the second quarter, expanding 1 percent from the first quarter, compared with the US Department of Commerce estimate of 1.3 percent.
PRECIOUS METALS: Gold rocketed to US$1,913.50 an ounce on Tuesday before sliding US$200 over the following days. Investors banked profits ahead of Bernanke’s speech and also as exchanges increased their fees on gold transactions, analysts said.
Barclays Capital forecast that gold prices, which have surged in recent months on economic uncertainty, would average US$1,875 in the fourth quarter, and US$2,000 an ounce next year.
“As long as global investor interest remains robust, prices are set to venture further to new highs,” Barclays Capital analyst Suki Cooper said.
Platinum hit a three-year high of US$1,916.75 an ounce before traders booked profits.
By late Friday on the London Bullion Market, gold fell to US$1,788 an ounce from US$1,848 the previous week.
Silver dropped to US$41.06 an ounce from US$41.98.
On the London Platinum and Palladium Market, platinum slipped to US$1,812 an ounce from US$1,855.
Palladium dipped to US$747 an ounce from US$750.
OIL: Crude prices rose over the week as investors tracked the endgame in oil-rich Libya and looked for clues regarding the outlook for the US economy.
Libyan oil output could take between six months and two years to return to normal, analysts said, as rebel forces looked set to bring Libyan leader Muammar Qaddafi’s 42-year rule to an end.
Oil traders were also bracing for the impact of Hurricane Irene on refineries along the east coast of the US.
“The US east coast is home to about 3 to 5 percent of the country’s total refinery capacity and is the delivery hub for US-traded gasoline futures, so the hurricane should underpin crude prices in the near term,” ANZ Research senior commodities strategist Nick Trevethan said.
By late Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in October rose to US$111.10 a barrel from US$108.51 a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for October stood at US$85.48 a barrel compared with US$83.04 for the September contract a week earlier.
BASE METALS: Base or industrial metals mostly rebounded.
“Metal prices proved very robust in a volatile market climate and made gains across the board,” Commerzbank analysts said in a note to clients.
“Copper was trading at a three-week high above the US$9,000 a tonne mark. The price should remain well supported in the coming months, and not just because of production problems in Chile, the world’s largest copper producer with 34 percent of the global market,” they wrote.
“Another strike is possible soon at the Grasberg mine in Indonesia, for example, which is the world’s second-largest copper mine,” they added.
By late Friday on the London Metal Exchange, copper for delivery in three months jumped to US$9,006 a tonne from US$8,837 the previous week.
Three-month aluminum climbed to US$2,369 a tonne from US$2,358.
Three-month lead gained to US$2,428 a tonne from US$2,310.25.
purpose: Tesla’s CEO sought to meet senior Chinese officials to discuss the rollout of its ‘full self-driving’ software in China and approval to transfer data they had collected Tesla Inc CEO Elon Musk arrived in Beijing yesterday on an unannounced visit, where he is expected to meet senior officials to discuss the rollout of "full self-driving" (FSD) software and permission to transfer data overseas, according to a person with knowledge of the matter. Chinese state media reported that he met Premier Li Qiang (李強) in Beijing, during which Li told Musk that Tesla's development in China could be regarded as a successful example of US-China economic and trade cooperation. Musk confirmed his meeting with the premier yesterday with a post on social media platform X. "Honored to meet with Premier Li
Dutch brewing company Heineken NV on Friday announced an investment of NT$13.5 billion (US$414.62 million) over the next five years in Taiwan. The first multinational brewing company to operate in Taiwan, Heineken made the statement at a ceremony held at its brewery in Pingtung County. It also outlined its efforts to make the brewery “net zero” by 2030. Heineken has been in the Taiwanese market for 20 years, Heineken Taiwan managing director Jeff Wu (吳建甫) said. With strong support from local consumers, the Dutch brewery decided to transition from sales to manufacturing in the country, Wu said. Heineken assumed majority ownership and management rights
coverage expansion: The industrial PC maker has proposed to acquire 3.938 million Aures shares to strengthen its global smart retail presence Leading industrial PC maker Advantech Co (研華) plans to acquire Aures Technologies SA, a French company known for its point-of-sale (POS) and kiosk equipment, to expand its global coverage in smart retail products and services. Advantech proposed to acquire 3.938 million Aures shares from the French firm’s major shareholder and through a public tender offer at up to 6.7 euros per share, the PC maker said in a statement after announcing the deal at the Taiwan Stock Exchange late on Friday. The company aims to acquire up to 100 percent equity of Aures, a well-known brand in the western market with a
Microsoft Corp yesterday said that it would create Thailand’s first data center region to boost cloud and artificial intelligence (AI) infrastructure, promising AI training to more than 100,000 people to develop tech. Bangkok is a key economic player in Southeast Asia, but it has lagged behind Indonesia and Singapore when it comes to the tech industry. Thailand has an “incredible opportunity to build a digital-first, AI-powered future,” Microsoft chairman and chief executive officer Satya Nadella said at an event in Bangkok. Data center regions are physical locations that store computing infrastructure, allowing secure and reliable access to cloud platforms. The global embrace of AI