Commodity prices were mostly lower this week, in line with tumbling stock markets as traders sought cover from the escalating eurozone debt crisis.
Financial markets fell sharply for days as Italy, Spain and France faced a sharp spike in borrowing costs, with the debt crisis showed new signs of spreading.
“Further escalation of the debt crisis in Europe has led to a sharp rise in risk aversion and put pressure on commodity prices across the board,” Commerzbank analyst Carsten Fritsch said.
OIL: Brent oil fell on intensifying concern over the impact of the eurozone debt crisis on global energy demand, but New York oil futures hit five-month highs thanks to a deal which is expected to reduce US energy stockpiles.
“Should Europe slide into a deep recession because of the debt crisis, this would have negative consequences for oil demand,” Fritsch said.
In New York, oil prices reached US$103.37 — the highest level since June 1, before falling back on profit-taking.
By late Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in January stood at US$109.04, compared with US$114.22 for the December contract a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for December, was almost flat at US$98.84 compared with US$98.82.
PRECIOUS METALS: Gold led precious metals lower.
“Bullion suffered from renewed profit-taking, driven by a broader market sell-off, with other metals in the sector also suffering substantial losses,” said Andrey Kryuchenkov, an analyst at Russian financial group VTB Capital.
Global demand for gold was 1,054 tonnes in the three months to September, up 6.0 percent year-on-year — equal to a record US$57.7 billion in value terms, the industry body said in a report.
By late Friday on the London Bullion Market, gold dropped to US$1,719 an ounce from US$1,773 the previous week.
Silver fell to US$32.25 an ounce from US$33.77.
On the London Platinum and Palladium Market, platinum slipped to US$1,594 an ounce from US$1,628. Palladium tumbled to US$608 an ounce from US$651.
BASE METALS: Industrial metals prices mainly retreated.
By late Friday on the London Metal Exchange, copper for delivery in three months fell to US$7,525 a tonne from US$7,623 the previous week.
Three-month aluminum drop-ped to US$2,105 a tonne from US$2,169.
Three-month lead firmed to US$2,060 a tonne from US$1,996. Three-month tin decreased to US$21,300 a tonne from US$21,700. Three-month zinc advanced to US$1,963 a tonne from US$1,912. Three-month nickel retreated to US$17,850 a tonne from US$18,350.
COCOA: Cocoa prices hit fresh lows owing to ample supplies and lower demand.
By Friday on LIFFE, London’s futures exchange, cocoa for delivery in March traded at £1,584 a tonne compared with£1,587 for the December contract a week earlier.
In New York on the NYBOT-ICE, cocoa for March hit US$2,492 a tonne compared with US$2,505 for the December contract.
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