Gold prices smashed their way to fresh record highs close to US$1,250 this week, with demand driven by investors seeking shelter from the eurozone debt crisis, analysts said.
Oil prices tumbled, however, as a strengthening US dollar made the raw material more expensive for holders of other currencies.
PRECIOUS METALS: Gold soared to US$1,249.40 an ounce on Friday on the London Bullion Market. Gold’s surge dragged sister metal silver to a two-year high of US$19.64 an ounce.
Heightened concerns about the risk of contagion from Greece’s debt woes have attracted fresh inflows of cash into gold, which is widely regarded as a safe bet in times of economic uncertainty.
“As long as skepticism with the eurozone plan remains synonymous with buying gold as a safe haven, we do not see any obstacle for US$1,300 per ounce before quarter’s end,” CMC Markets analyst Ashraf Laidi said.
By late on Friday on the London Bullion Market, gold climbed to US$1,236.50 an ounce from US$1,202.50 the previous week.
Silver surged to US$19.64 an ounce from US$17.70.
On the London Platinum and Palladium Market, platinum rallied to US$1,721 an ounce from US$1,651.
Palladium grew to US$536 an ounce from US$505.
OIL: Oil prices tumbled further this week, hit by stubborn eurozone economic concerns, a strong US dollar and high US crude stockpiles, traders said.
The market began the week on a bright note, soaring on Monday after a EU-IMF eurozone rescue plan eased market concerns over the eurozone financial crisis.
However, prices have since fallen as market enthusiasm waned for the massive bailout plan, while concern grew about higher Chinese inflation that could slow global economic growth.
Oil also took a major hit from the stronger US dollar, which dented demand.
Meanwhile, the US government’s Department of Energy revealed on Wednesday that US crude stockpiles had risen by 1.9 million barrels last week, more than double the amount forecast by analysts.
By late on Friday on the New York Mercantile Exchange, Texas light sweet crude for delivery in June sank to US$73.25 from US$75.81 a week earlier.
On London’s Intercontinental Exchange, Brent North Sea crude for June delivery dropped to US$77.75 compared with US$78.55.
BASE METALS: Base metals prices mostly fell. By Friday on the London Metal Exchange, copper for delivery in three months rose to US$6,908 a tonne from US$6,891 a week earlier.
Three-month aluminum rose to US$2,093 a tonne from US$2,090.
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