Commodity prices mostly slumped this week on fears of sluggish demand for raw materials following the release of poor global economic data, analysts said.
However, they won some support on Friday in the wake of better-than-expected US jobs data that followed a week of disappointing economic data out of the US and China — both leading consumers of commodities.
PRECIOUS METALS: The price of gold slumped after striking a record high the previous week.
“Fears the global economic recovery could falter with some economies slipping into double-dip recession triggered a rout of risk reduction,” said James Moore, analyst at TheBullionDesk.com.
Gold had struck an all-time peak of US$1,265.30 an ounce on June 21 as the US dollar weakened. By late on Friday on the London Bullion Market, gold dropped to US$1,201.50 an ounce from US$1,254 the previous week.
Silver slid to US$17.98 an ounce from US$18.65.
On the London Platinum and Palladium Market, platinum retreated to US$1,516 an ounce from US$1,549.
Palladium decreased to US$433 an ounce from US$466.
OIL: Crude oil tumbled as weak data sparked serious concern about lower energy demand in a faltering global economic recovery.
Prices dived by almost US$3 on Thursday alone, hammered by a batch of downbeat economic data on the first day of the third quarter of this year.
“The start to the new quarter saw more pain for the oil market,” VTB Capital analyst Andrey Kryuchenkov said.
“Crude prices tumbled ... after even more downbeat data from the United States. The market was already under pressure in early trading on worries of slowing growth in China. However, exceptionally weak US June Manufacturing PMIs, rising weekly jobless claims and a sharp contraction in May pending home sales were the last straws,” he added.
Separate surveys this week showed slowing growth in manufacturing activity in China during June.
The HSBC China Manufacturing PMI, or purchasing managers’ index, fell to 50.4 last month from 52.7 in May, the bank said.
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in August slid to US$72.98 a barrel from US$78.55.
On London’s Intercontinental Exchange, Brent North Sea crude for August delivery tumbled to US$72.38 from US$78.00.
BASE METALS: Base metal prices dropped this week.
“Metal prices declined broadly once again ... due to weaker economic data and sagging stock markets,” Commerzbank analysts said in a research note.
By Friday on the London Metal Exchange, copper for delivery in three months fell to US$6,484 a tonne from US$6,630 a week earlier.
COFFEE: Coffee futures steadied a week after reaching 12-year highs owing to tight supplies.
The previous week in New York, Arabica for September had 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 rose to US$1,710 a tonne from US$1,667 the previous week.
On the New York Board of Trade (NYBOT), Arabica for September dipped to US$1.6630 a pound from US$1.6730.
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