Gold prices hit multiyear low points this week, hit by a stronger US dollar and weak Chinese demand.
With metals prices generally weak, mining groups Anglo American and Lonmin on Friday announced plans to cut their headcounts by up to a combined 12,000 staff.
PRECIOUS METALS: Gold slumped to the lowest point in nearly five and a half years, weighed down by the strong dollar and reports of massive selling in China, dealers said.
The metal struck US$1,072.35 an ounce on Monday — the lowest level since February 2010.
Sister metal silver hit a six-year trough at US$14.37 an ounce and platinum reached the lowest level in more than six years to US$946.25 an ounce.
“It can’t be overestimated how much sentiment towards purchasing gold has been weakened following the stunning and sudden drop below US$1,100 at the beginning of the week,” said Jameel Ahmad, chief market analyst at trading group FXTM.
“There was already clear hesitation from buyers towards purchasing gold as the markets approach the timing of a US interest rate rise and such a sudden decline in the value of gold has further eliminated investors from even considering positions,” he said.
Gold had already slid the previous week on the back of the strong dollar, which soared last week after US Federal Reserve Chair Janet Yellen reaffirmed expectations of an interest rate hike by year-end.
By Friday on the London Bullion Market, the price of gold dropped to US$1,080.80 an ounce from US$1,132.80 a week earlier.
Silver fell to US$14.49 an ounce from US$15.01.
On the London Platinum and Palladium Market, platinum slid to US$979 an ounce from US$998.
Palladium retreated to US$616 an ounce from US$655.
OIL: Prices slid on persistent concerns about abundant supplies in a slowing global economy.
New York crude finished below US$49 a barrel on Thursday for the first time since March 31.
On Friday, Brent North Sea crude struck a near four-month low at US$54.40.
The US Department of Energy on Wednesday said the country’s commercial crude stockpiles rose 2.5 million barrels last week, while supplies at the closely watched Cushing, Oklahoma, hub were up 800,000 barrels.
The report also showed US production staying at near-record levels of about 9.6 million barrels per day, bad news for a market already awash with crude from the OPEC.
Dampening appetite also is the prospect of Iranian oil returning to the oversupplied market after Tehran recently reached a deal with major powers over its nuclear ambitions.
The Iranian deal will see world powers lift crippling economic sanctions, which have restricted Iran’s oil exports, in return for toning down its atomic program.
Iran has the fourth-biggest proven oil reserves in the world.
Oil prices have plummeted from above US$100 a barrel in June last year because of the supply glut brought about by strong production from the US and OPEC led by Saudi Arabia.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in September slid to US$54.42 a barrel from US$56.74 a week earlier. On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for September stood at US$48.01 a barrel compared with US$50.34 a barrel for the expired August contract a week earlier.
BASE METALS: Prices were hit by weak Chinese data, with copper striking a six-year low at US$5,191.50 a tonne on Friday.
A key gauge of Chinese manufacturing activity tumbled to a 15-month low this month, an independent survey showed, throwing a pall over growth in the world’s second-largest economy.
By Friday on the London Metal Exchange, copper for delivery in three months declined to US$5,245 a tonne from US$5,507 a week earlier.
Three-month aluminum decreased to US$1,636.50 a tonne from US$1,707.50, and three-month lead fell to US$1,714.50 a tonne from US$1,835.
Three-month tin dipped to US$14,910 a tonne from US$15,675, three-month nickel retreated to US$11,250 a tonne from US$11,465, and three-month zinc slid to US$1,958.50 a tonne from US$2,074.
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