Gold prices topped US$1,500 this week for the first time on record because of concerns over rising global inflation and debt levels, while oil advanced in volatile trade.
Markets were shut on Friday on both sides of the Atlantic for the long Easter holiday break.
PRECIOUS METALS: The price of gold hit record highs above US$1,500 as investors piled into the traditional safe-haven precious metal.
Gold hit US$1,509 an ounce on the London Bullion Market, with silver also rising to record a 31-year high of US$46.25 an ounce.
“Gold prices traded through the US$1,500 an ounce milestone ... on the back of inflationary concerns and sovereign debt uncertainty,” Barclays Capital analyst Suki Cooper said.
The metal is seen as a safe store of value in troubled economic and political times.
“Gold remains comfortably underpinned with short-term inflation pressures and economic woes triggering some fresh safe-haven inflows,” said Andrey Kryuchenkov, commodities analyst at Russian financial group VTB Capital.
Gold began its run toward US$1,500 on Monday after ratings agency Standard & Poor’s revised its outlook on US sovereign debt to “negative” from “stable,” its first ever downgrade for the US.
Metals consultancy GFMS forecasts that gold prices will soar past US$1,600 this year, driven primarily by fears over high inflation.
Kryuchenkov said that gold “shot up after S&P [Standard & Poor’s] downgraded the US sovereign debt outlook to negative. The move came on top of existing economic woes over resurfacing debt troubles in the eurozone.”
Gold has risen 6 percent since the start of the year, breaking a series of record highs along the way. It topped US$1,000 for the first time in March 2008.
By late Thursday on the London Bullion Market, gold rose to US$1,504 an ounce from US$1,476.75 on Friday the previous week.
Silver climbed to US$46.02 an ounce from US$42.61.
On the London Platinum and Palladium Market, platinum increased to US$1,812 an ounce from US$1,787.
Palladium dipped to US$765 an ounce from US$772.
OIL: Oil prices rose in a volatile week.
Prices gained “following the weak US dollar that currently dominates and supports the oil market,” said Myrto Sokou, an analyst at Sucden Financial brokers.
“It should be noted that crude oil prices have gained almost US$5 since the start of the week, showing that the upside rally continues to remain strong despite these uncertain and fragile economic conditions,” she added.
Oil prices have made solid gains since slumping at the start of the week on the S&P US outlook downgrade.
They were also hit as key industry bodies expressed concern about the impact of high energy costs on demand.
OPEC secretary-general Abdullah El-Badri said the cartel was “concerned” by high oil prices while the head of the International Energy Agency, Nobua Tanaka, said “very high” levels may undermine economic growth and demand.
In response, Gulf oil producers assured consumers of sufficient supplies to help stem rises in prices, fueled also by sweeping unrest in the Middle East and speculative trade.
By late Thursday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in June was up at US$123.47 a barrel from US$122.57 on Friday the previous week.
On the New York Mercantile Exchange, West Texas Intermediate, or light sweet crude, for June stood at US$111.71 compared with US$108.42 for the May contract.
COCOA: Prices fell after recent gains caused by the political unrest in Ivory Coast, the world’s largest producer.
By Thursday on LIFFE, London’s futures exchange, cocoa for delivery in July dropped to ￡1,896 a tonne from ￡1,962 on Friday the previous week.
In New York on the NYBOT-ICE, cocoa for July slipped to US$3,084 a tonne from US$3,130.
COFFEE: Coffee prices struck 34-year highs at US$3.00 a pound (0.45kg) in New York on tight supplies, while futures fell in London.
“Report of thunderstorms in Brazil’s growing area added to the supply fears for Arabica beans,” commodities publication The Public Ledger said.
By Thursday on LIFFE, Robusta for delivery in May stood at US$2,426 a tonne compared with US$2,445 for the July contract on Friday the previous week.
On NYBOT-ICE, Arabica for July advanced to US$2.9820 a pound from US$2.8775.
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