Gold blazed a record-breaking trail above US$1,123 this week owing to buoyant equities and the weak greenback, which makes it cheaper for buyers using stronger currencies and tends to boost demand.
Elsewhere, crude dived close to one-month lows as oil traders switched focus to weak demand and rising inventories in key energy consuming nation the US, analysts said.
PRECIOUS METALS: The price of gold surged to an all-time pinnacle of US$1,123.38 per ounce here on Thursday.
“The metal remained supported by stronger equities and the weaker dollar,” said James Moore, analyst at the specialist metals Web site TheBullionDesk.com.
The metal also won support from fears over a possible spike in inflation, as gold is widely regarded by investors as a safe store of value.
Gold, which has risen more than 20 percent in value this year, has a bright future thanks to improving demand caused by the financial crisis, according to industry experts.
However, the glamorous commodity pared gains ahead of the weekend as many traders cashed in profits.
“The rally in gold looks exhausted at current levels as traders talk of taking money off the table ahead of the weekend,” ETX Capital trader Manoj Ladwa said. “While the long-term trend remains in place, some are happy booking a profit in case of any sharp sell-off.”
By late Friday on the London Bullion Market, gold rose to US$1,104 an ounce from US$1,096.75 a week earlier.
Silver slid to US$17.32 an ounce from US$17.52.
On the London Platinum and Palladium Market, platinum was unchanged at US$1,359 an ounce at the late fixing on Friday from the previous week.
Palladium climbed to US$354 an ounce from US$330.
OIL: World oil prices sank heavily this week as traders fretted over weak US energy demand, and despite news that the eurozone has officially emerged from recession.
“Prices fall to their lowest level in almost a month, pressurized by a bearish set of US weekly oil data,” Barclays Capital analyst Kevin Norrish said in a research note to clients. “Yesterday’s US data shows a continuation of the trend that has now been in place for a while, whereby the supply system tries to adjust to continued weak demand.”
Crude futures had slumped on Thursday on a huge jump in US crude stockpiles indicating weaker US demand for oil. New York crude had dropped US$2.34 and London Brent oil shed US$1.93.
The US Department of Energy said US crude oil reserves surged 1.8 million barrels in the week ending last Friday, more than the 200,000 barrels anticipated by the market.
GRAINS AND SOYA: Prices rose in choppy deals as traders tracked weather conditions in the United States.
“We continue to have a choppy market,” analyst Jason Roose at US Commodities said. “If we continue to see good weather ... we could see weakness in the market.”
By Friday on the Chicago Board of Trade, maize for delivery in December rose to US$3.91 a bushel from US$3.67 a week earlier.
January-dated soyabean meal — used in animal feed — climbed to US$9.99 from US$9.55.
Wheat for December increased to US$5.38 a bushel from US$4.97.
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