Commodity prices traded mixed this week as investors digested news of a sharp slowdown in economic growth in the US, which is a major consumer of raw materials.
Coffee was the star performer, striking a 12-year pinnacle in New York as speculative buyers dived into the market.
OIL: Crude oil prices fell this week after a steady start as Tropical Storm Bonnie departed the Gulf of Mexico, which is home to many energy installations.
The market plunged on Tuesday after a key survey showed US consumer confidence slumped to the worst level in five months.
Losses were extended mid-week after a huge unexpected jump in US crude stockpiles added to nerves over the economic outlook.
The US Department of Energy said crude oil inventories jumped 7.3 million barrels last week in the US, suggesting weaker demand.
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in September dipped to US$77.67 a barrel, from US$78.72 the previous week.
On London’s Intercontinental Exchange, Brent North Sea crude for September delivery slipped to US$77.04 compared with US$77.30 the previous week.
PRECIOUS METALS: Prices diverged, with gold falling as the glamorous metal lost its safe-haven appeal amid easing inflation concerns.
“The recent weakness in gold prices ... mainly reflects lower demand for the precious metal as a safe haven or inflation hedge,” Capital Economics analyst Julian Jessop said.
By late on Friday on the London Bullion Market, gold fell to US$1,169 an ounce from US$1,190.50 the previous week.
Silver slid to US$17.66 an ounce from US$18.17.
On the London Platinum and Palladium Market, platinum climbed to US$1,555 an ounce from US$1,541.
Palladium increased to US$487 an ounce from US$460.
BASE METALS: Prices advanced across the board.
“Base metals continue to benefit from the persistently high risk appetite of market participants,” Commerzbank analyst Eugen Weinberg said.
By Friday on the London Metal Exchange, copper for delivery in three months had jumped to US$7,225 a tonne from US$7,030 a week earlier.
Three-month aluminum leapt to US$2,134 a tonne from US$2,038.
COFFEE: Coffee futures soared, striking a 12-year peak in London on keen demand from speculative buyers.
“New York led the way under speculative demand,” analyst Ralph Hawes at Sucden said.
New York Arabica coffee jumped as high as US$1.7875 on Friday, reaching the best level since February 1998.
London Robusta, meanwhile, touched US$1,810, which was the highest level since October 2008.
By Friday on LIFFE, Robusta for delivery in September stood at US$1,786 a tonne, up from US$1,724 the previous week.
On NYBOT, Arabica for September increased to US$1.7525 a pound from US$1.6670.
A magnitude 7.8 earthquake struck off the southern coast of Mindanao in the Philippines at 7:38am today, prompting the US Tsunami Warning System to issue an alert for neighboring countries, including Taiwan. The system issued a purple alert indicating a "tsunami threat." The potential threat zone includes Taiwan, the Philippines, Papua New Guinea, Yap and Palau. Philippine authorities were assessing the damage from the quake, with the office of civil defense seeking to verifying initial reports that 15 people had been killed and 129 injured in the region, mostly from falling debris. Arlene Hollero, disaster chief of Maasim town in the Philippines' Sarangani Province,
RESILIENCE: Taiwan plays a key role in semiconductors, energy, information infrastructure and advanced manufacturing, AIT Director Raymond Greene said Taiwan’s continued investment in deterrence and resilience remains vital, especially in uncrewed systems and other emerging technologies, American Institute in Taiwan (AIT) Director Raymond Greene said yesterday. Greene made the remarks at the annual National Strategic Summit on Supply Chain Resilience held by the Research Institute for Democracy, Society and Emerging Technology (DSET), a government-backed think tank. As Taiwan last year became the US’ fourth-largest trading partner and supply chain security is becoming more important, cooperation in emerging technologies continues to deepen between the two countries, he said. The US is committed to accelerating innovation, building key infrastructure, strengthening cooperation
‘GRAY ZONE’ PRESSURE: Beijing’s activities are intended to create the deceitful impression that China has jurisdiction over the area around Taiwan, the CGA said Taiwan’s rights over its territorial waters and exclusive economic zone must not be violated by any country, the Mainland Affairs Council said yesterday, adding that it will not accept any unprovoked actions. The council issued the remarks in response to the China Coast Guard conducting maritime enforcement drills near eastern Taiwan and claiming to fully exercise China’s maritime administrative law enforcement authority. The Coast Guard Administration (CGA) has been closely monitoring the situation and is taking concrete steps to defend the nation’s sovereignty and secure its waters, the council said. China has no sovereign rights over the waters off eastern
The National Chungshan Institute of Science and Technology yesterday showcased its locally developed variants of the Vision 60 robotic patrol dog, which it plans to deploy on the nation’s outlying territories in the South China Sea. The variants were produced under the Joint Lab project — created by the institute and domestic companies — and assembled with domestically produced motors, lenses and artificial intelligence (AI) systems alongside licensed tech from the US, Missile and Rocket Systems Research Division deputy director Jen Kuo-kang (任國光) told the media event at a military base in Taipei’s Dazhi (大直) area. Taiwan has built up its strengths
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