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.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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