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.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from