Precious metals moved slightly higher on Friday, supported by more weakness in the US dollar.
Other commodities like base metals and oil declined as investors refrained from making big bets on economically sensitive materials following a report suggesting consumer demand is still soft.
Trading was generally quiet on Friday amid light volume, which can exaggerate moves in the market. The mixed bag of news for commodities has become a familiar pattern in recent weeks as investors weigh the impact of a weak US dollar against lingering concerns about the economy’s health.
“People seem to be a bit more anxious about the economy than they were even two weeks ago,” said Matt Zeman, head trader at LaSalle Futures in Chicago.
OIL: Oil prices fell on Friday as traders booked profits from a strong rally and fretted about lackluster US consumer spending and new unrest in oil-producing Nigeria.
New York’s main futures contract, light sweet crude for delivery in August, tumbled US$1.07 a barrel from Thursday to close at US$69.16. It had risen US$1.56 on Thursday.
In London, Brent North Sea crude for August dipped US$0.86 to US$68.92.
“There are a lot of concerns about the spending data,” said Ellis Eckland, an independent trader.
“We are in the driving season and the [gasoline] demand remains weak,” he added.
The Commerce Department reported US consumer spending rose a tepid 0.3 percent last month from April, mainly as a result of a massive government stimulus launched by US President Barack Obama.
Traders focused on the weakness in US gasoline demand in the run-up to the July 4 Independence Day holiday.
METALS: September silver gained US$0.124 to US$14.1560 an ounce on the New York Mercantile Exchange. However, silver ended the week down for the fourth straight week, slipping 0.3 percent over the five-day period.
Gold for August delivery added US$1.50 to US$941 an ounce on the NYMEX, while July platinum rose US$12 to US$1,203 an ounce.
Gold, which investors use as a hedge against inflation, ended the week up 0.5 percent after three straight weeks of declines.
Among base metals, September copper futures fell less than 1 penny to US$2.3090 a pound, but ended the week up 2.1 percent.
Aluminum prices dipped 2 percent on Friday.
GRAINS AND SOYA: Grain prices rose slightly on the Chicago Board of Trade. September wheat futures rose US$0.015 to US$5.63 a bushel, while corn for September delivery added US$0.0175 to US$3.9175 a bushel.
August soybeans inched up US$0.01 to US$11.28 a bushel.
DEFENSE: The first set of three NASAMS that were previously purchased is expected to be delivered by the end of this year and deployed near the capital, sources said Taiwan plans to procure 28 more sets of M-142 High Mobility Artillery Rocket Systems (HIMARS), as well as nine additional sets of National Advanced Surface-to-Air Missile Systems (NASAMS), military sources said yesterday. Taiwan had previously purchased 29 HIMARS launchers from the US and received the first 11 last year. Once the planned purchases are completed and delivered, Taiwan would have 57 sets of HIMARS. The army has also increased the number of MGM-140 Army Tactical Missile Systems (ATACMS) purchased from 64 to 84, the sources added. Each HIMARS launch pod can carry six Guided Multiple Launch Rocket Systems, capable of
TRAJECTORY: The severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday, and would influence the nation to varying degrees, a forecaster said The Central Weather Administration (CWA) yesterday said it would likely issue a sea warning for Tropical Storm Podul tomorrow morning and a land warning that evening at the earliest. CWA forecaster Lin Ting-yi (林定宜) said the severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday. As of 2pm yesterday, the storm was moving west at 21kph and packing sustained winds of 108kph and gusts of up to 136.8kph, the CWA said. Lin said that the tropical storm was about 1,710km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, with two possible trajectories over the next one
Tropical Storm Podul strengthened into a typhoon at 8pm yesterday, the Central Weather Administration (CWA) said, with a sea warning to be issued late last night or early this morning. As of 8pm, the typhoon was 1,020km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, moving west at 23kph. The storm carried maximum sustained winds of 119kph and gusts reaching 155kph, the CWA said. Based on the tropical storm’s trajectory, a land warning could be issued any time from midday today, it added. CWA forecaster Chang Chun-yao (張竣堯) said Podul is a fast-moving storm that is forecast to bring its heaviest rainfall and strongest
CRITICISM: It is deeply regrettable that China, which is pursuing nuclear weapons, has suppressed Taiwan, which is pursuing peace, a government official said Representative to Japan Lee Yi-yang (李逸洋) yesterday accused Beijing of interference after Taiwan’s official delegation to the Nagasaki Peace Memorial Ceremony in Japan was assigned seating in the “international non-governmental organizations [NGO]” area. “Taiwan is by no means an international NGO, but a sovereign nation that is active on the international stage,” Lee said. Lee and Chen Ming-chun (陳銘俊), head of the Taipei Economic and Cultural Office (TECO) in Fukuoka, attended the ceremony in Nagasaki yesterday, which marked the 80th anniversary of the atomic bombing of the city. That followed Lee’s attendance at the Hiroshima Peace Memorial Ceremony on Wednesday
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