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.
PLA MANEUVERS: Although Beijing has yet to formally announce military drills, its coast guard vessels have been spotted near and around Taiwan since Friday The Taiwanese military is on high alert and is closely monitoring the Chinese People’s Liberation Army’s (PLA) air and naval deployments after Beijing yesterday reserved seven airspace areas east of its Zhejiang and Fujian provinces through Wednesday. Beijing’s action was perceived as a precursor to a potential third “Joint Sword” military exercise, which national security experts said the PLA could launch following President William Lai’s (賴清德) state visits to the nation’s three Pacific allies and stopovers in Hawaii and Guam last week. Unlike the Joint Sword military exercises in May and October, when Beijing provided detailed information about the affected areas, it
Five flights have been arranged to help nearly 2,000 Taiwanese tourists return home from Okinawa after being stranded due to cruise ship maintenance issues, the Ministry of Transportation and Communications announced yesterday. China Airlines Ltd (中華航空), and EVA Airways Corp (長榮航空) have arranged five flights with a total of 748 additional seats to transport 1,857 passengers from the MSC Bellissima back to Taiwan, the ministry said. The flights have been scheduled for yesterday and today by the Civil Aviation Administration, with the cruise operator covering all associated costs. The MSC Bellissima, carrying 4,341 passengers, departed from Keelung on Wednesday last week for Okinawa,
US president-elect Donald Trump said he would “never say” if Washington is committed to defending Taiwan from China, but “I would prefer that they do not do it [ an attack],” adding that he has a “good relationship” with Chinese President Xi Jinping (習近平). “I never say because I have to negotiate things, right?” Trump said in an interview with NBC’s Meet the Press host Kristen Welker after saying he would not reveal his incoming administration’s stance on Taiwan’s defense in the event of an attack. Asked the question again, Trump, in a reference to China, said: “I would prefer that they
CROSS-STRAIT TENSIONS: MOFA demanded Beijing stop its military intimidation and ‘irrational behavior’ that endanger peace and stability in the Indo-Pacific region The Presidential Office yesterday called on China to stop all “provocative acts,” saying ongoing Chinese military activity in the nearby waters of Taiwan was a “blatant disruption” of the “status quo” of security and stability in the Indo-Pacific region. Defense officials said they have detected Chinese ships since Monday, both off Taiwan and farther out along the first island chain. They described the formations as two walls designed to demonstrate that the waters belong to China. The Ministry of National Defense yesterday said it had detected 53 military aircraft operating around the nation over the past 24 hours, as well
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