Gold rocketed to an all-time high this week after China announced that it would relax its currency’s peg to the US dollar, while coffee scored a 12-year peak on the back of tight supplies.
After initial gains on the China news, many commodities slid as downbeat US data highlighted a faltering US economy and sparked questions about the outlook for demand in the world’s biggest energy consuming nation.
PRECIOUS METALS: The price of gold soared to a new historic record of US$1,265.30 per ounce at the start of the week.
“Gold opened Monday in a steady mood, holding ground above 1,255 across the early part of the day and setting a fresh peak of 1,265.30,” said analyst James Moore at specialist metals Web site TheBullionDesk.com.
By late on Friday on the London Bullion Market, gold prices were at US$1,254 an ounce from US$1,256 the previous week.
Silver eased to US$18.65 an ounce from US$18.77.
On the London Platinum and Palladium Market, platinum slipped to US$1,549 an ounce from US$1,578.
Palladium declined to US$466 an ounce from US$484.
OIL: Crude oil had rallied on Monday after China announced that it would relax the yuan’s US dollar peg, and also ended the week higher on supply fears about stormy weather in the Caribbean.
The booming export-geared Chinese economy is leading the global recovery from recession and is considered the key driver of energy demand as the world’s second-largest oil-consuming nation, after the US.
The oil market pulled back on Tuesday as renewed economic recovery concerns resurfaced.
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in August rose to US$78.55 a barrel from US$77.26 for the July contract one week earlier.
On the Intercontinental Exchange in London, Brent North Sea crude for August delivery eased to US$78.00 from US$78.49.
BASE METALS: Base metal prices mainly rose, boosted by positive news from China.
By Friday on the London Metal Exchange, copper for delivery in three months rose to US$6,630 a tonne from US$6,365 a week earlier.
Three-month aluminum edged up to US$1,976 a tonne from US$1,960.
COFFEE: Coffee surged to a 12-year pinnacle in New York, propelled by simmering worries over tight supplies.
“Prices ... are at their loftiest level in 12 years, with continued concerns on low stocks and supply tightness from Central America outweighing expectations of a record Brazilian harvest in the second half,” Barclays Capital analyst Sudakshina Unnikrishnan said.
In New York, Arabica for September jumped to US$1.7650 a pound (0.45kg) — striking a level that was last seen in February 1998.
By Friday on LIFFE — London’s futures exchange — Robusta for delivery in September jumped to US$1,667 a tonne from US$1,560 the previous week.
On the New York Board of Trade (NYBOT), Arabica for July advanced to US$1.6730 a pound from US$1.6055.
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