Oil and gold prices extended their recent rallies this week as investors scooped up commodities on signs of a pick-up in a global economy that has suffered its worst downturn in decades.
OIL: Oil prices rose on Friday, hovering above US$60 levels ahead of an extended holiday weekend and as traders began focusing on an upcoming meeting of the OPEC cartel.
New York’s main futures contract, light, sweet crude for delivery in July, rose US$0.62 from Thursday’s close to end the week at US$61.67 per barrel. The July contract increased 8.2 percent this week. Prices are up 38 percent this year.
In London, Brent North Sea crude for July advanced US$0.85 from Thursday to US$60.78. Markets in Britain also will be closed tomorrow.
Trading was lackluster as dealers were reluctant to take positions ahead of a long weekend that includes the Memorial Day holiday tomorrow — also the unofficial start of the US’ summer driving season, which could drive fuel prices.
But higher stock prices and a weakening dollar gave a boost to the market.
“I think the market is taking a breather going into a three-day holiday,” Phil Flynn of Alaron Trading said.
But this “is an important weekend for the oil market,” he added.
The market “will be relieved that they see people traveling [and] on the other hand, if the numbers are disappointing, we’re going to see the concerns slip back into the market,” Flynn said.
PRECIOUS METALS: Gold prices reached the highest point in almost two months, benefiting from its safe-haven status amid a weak US dollar. Gold reached US$961.33 an ounce — a level last seen on March 26.
By late Friday on the London Bullion Market, gold rallied to US$959.75 an ounce from US$929.50 a week earlier.
Silver rose to US$14.83 an ounce from US$13.92.
On the London Platinum and Palladium Market, platinum climbed to US$1,149 an ounce at the late fixing on Friday from US$1,109.
Palladium gained to US$234 an ounce from US$224.50.
BASE METALS: Base metals prices diverged.
By Friday on the London Metal Exchange, copper for delivery in three months rose to US$4,582 a tonne from US$4,352 a week earlier.
Three-month aluminum fell to US$1,437 a tonne from US$1,515.
COFFEE: Coffee prices extended recent gains.
By Friday on LIFFE, Robusta for delivery in July climbed to US$1,526 a tonne from US$1,500 a week earlier.
On the NYBOT, Arabica for July jumped to US$1.382 a pound from US$1.27.
GRAINS AND SOYA: Grains and soya prices climbed. Allendale analyst Joe Victor said it had been an “ideal” week for prices, with “crude oil higher, [the] dollar lower and support of the stock market.”
By Friday on the Chicago Board of Trade, maize for delivery in July rose to US$4.29 a bushel from US$4.17 a week earlier.
July-dated soyabean meal — used in animal feed — increased to US$11.73 from US$11.30.
Wheat for July advanced to US$6.07 a bushel from US$5.77.
Also See: Colombian coffee exports down 21% in first four months
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