Gold glistened this week, striking a record peak as investors hunted for a safe-haven amid violent unrest in Libya that has sparked fears about spreading instability in the Middle East and North Africa.
New York crude crossed US$104 per barrel to reach the highest level for two-and-a-half years, as the African nation was forced to slash exports.
“Geopolitics and the uncertainty and volatility associated with it continues to set the tone for oil price dynamics,” Barclays Capital analyst Sudakshina Unnikrishnan said. “Unrest in the MENA [Middle East and North Africa] region continues apace, with Libya effectively remaining out of the oil market; while the replacement of the lost Libyan barrels is eating into spare capacity, rampant demand growth is adding further pressure.”
PRECIOUS METALS: Gold rocketed to an all-time peak at US$1,440.32 per ounce on Wednesday, while silver struck a 30-year pinnacle of US$35.36 on Friday.
“Gold and silver prices have continued to test all-time and 30-year highs respectively as a flight to safety has boosted interest on the back of a combination of the ongoing unrest in the Middle East, higher oil prices, inflationary fears and a weaker dollar,” Unnikrishnan added.
The precious metals draw strength in times of geopolitical turmoil and higher inflation because they are regarded as a safe store of value.
By late Friday on the London Bullion Market, gold rose to US$1,427 an ounce from US$1,402.50 a week earlier.
Silver increased to US$34.43 an ounce from US$32.54.
On the London Platinum and Palladium Market, platinum climbed to US$1,828 an ounce from US$1,791.
Palladium rose to US$811 an ounce from US$785.
OIL: New York crude surged to US$104.32 on Friday, hitting a level last seen on Sept. 29, 2008.
“Libya is falling apart and [Libyan leader Muammar] Qaddafi’s attempts to stitch it back together are making the oil situation worse,” Deutsche Bank analyst Adam Sieminski said.
The head of Libya’s National Oil Corp, Shukri Ghanem, told reporters on Thursday that the nation’s production had “been halved.”
“The real fear has been for a wider spread of the uprising across the MENA region with disruptions in oil production happening not just in Libya,” SEB commodities analyst Bjarne Schieldrop said.
Brent oil jumped to US$116.49 on Friday, but held underneath the 2008 peak of US$119.79 that was forged last week.
By Friday afternoon on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month rallied to US$115.77 a barrel, compared with US$111.57 a week earlier.
On the New York Mercantile Exchange, Texas light sweet crude for delivery next month jumped to US$103.45 a barrel, compared with US$97.24 a week earlier.
COCOA: The market rocketed once again to the highest points in more than 30 years, driven by worsening unrest in top producer Ivory Coast.
New York cocoa soared as high as US$3,775 per tonne on Friday, touching a level last seen in early January 1979, while London prices neared the highest point in 33 years.
By Friday on LIFFE, London’s futures exchange, cocoa for May rallied to ￡2,414 a tonne from ￡2,371 a week earlier.
On NYBOT, cocoa for delivery in May increased to US$3,766 a tonne from US$3,637 a week earlier.
SUGAR: Prices gained ground.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for delivery in May rose to US$0.3062 a pound from US$0.2764 a week earlier.
On LIFFE, the price of a tonne of white sugar for May increased to ￡759.30 from ￡699.50 a week earlier.
GRAINS AND SOYA: Prices climbed, with maize striking the highest level since July 2008.
By Friday on the Chicago Board of Trade, May-dated soyabean meal — used in animal feed — rose to US$14.04 a bushel from US$13.75 a week earlier.
Maize for delivery in May advanced to US$7.31 a bushel from US$7.22.
Wheat for May increased to US$8.26 from US$8.11.
COFFEE: Prices scored multi-year peaks, hitting a 1977 high in New York, as traders fretted over low inventories.
By Friday on NYBOT, Arabica for delivery in May leapt to US$2.773 a pound from US$2.6655 a week earlier.
On LIFFE, Robusta for May rose to US$2,403 a tonne from US$2,328 a week earlier.
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