Commodity prices mainly fell this week, with market sentiment dominated by the eurozone debt crisis, which overshadowed a shock interest rate cut by the European Central Bank and a drop in US unemployment.
Greece on Friday announced that it had scrapped plans to hold a referendum on a debt bailout central to its recovery and that of the eurozone. It came as the G20 meeting at a summit in Cannes, France, failed to agree on a figure for a boost in IMF resources so as help struggling countries in need of fresh finance.
OIL: Prices rose as traders closely watched eurozone debt developments.
“Oil prices are still being driven by external factors primarily. News that the planned [Greek] referendum ... had been canceled gave a lift to prices,” Commerzbank analyst Carsten Fritsch said.
“Furthermore, the surprising interest rate cut by the ECB added to the positive mood, as it was interpreted by most market players as a growth-enhancing factor,” he said.
By late Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery next month rose to US$111.40 a barrel from US$110.10 a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for December, was up at US$93.92 from US$92.89.
PRECIOUS METALS: Gold edged higher.
“Gold can be expected to enjoy continued strong demand as a store of value and a safe haven amid the many U-turns we have seen during the Greek crisis,” analysts at Commerzbank said.
By late Friday on the London Bullion Market, gold edged up to US$1,749 an ounce from US$1,741 the previous week.
Silver fell to US$33.95 an ounce from US$35.42.
On the London Platinum and Palladium Market, platinum dipped to US$1,623.50 an ounce from US$1,629.
Palladium slipped to US$652 an ounce from US$659.
BASE METALS: Prices of industrial metals were mixed.
By late Friday on the London Metal Exchange, copper for delivery in three months fell to US$7,832 a tonne from US$8,030 the previous week.
Three-month aluminum fell to US$2,143 a tonne from US$2,238.
Three-month lead rose to US$2,031 a tonne from US$2,011.
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