Crude oil prices struck fresh record high points last week amid tight global supplies of energy. Oil and other commodities priced in dollars also benefited from a weak US dollar as they became cheaper for buyers using stronger currencies.
The euro on Friday breached 1.42 dollars for the first time as the US currency came under heavy selling pressure on expectations of further interest rate cuts in the United States, dealers said. The US Federal Reserve last week cut its key interest rate by a bigger-than-expected 50 basis points to 4.75 percent.
OIL: The price of London Brent crude oil rocketed to a record high 81.05 dollars per barrel Friday owing to concerns over stretched global energy supplies. New York's oil price had soared to a record 84.10 dollars the previous week.
Prices spiked by more than two and a half dollars on Thursday, with London smashing through 80 dollars for the first ever time owing to stormy weather in the rig-heavy Gulf of Mexico.
The Gulf of Mexico is a leading oil-producing region for the United States and Mexico and investors are worried that, during the long Atlantic hurricane season that ends in November, a storm will damage oil rigs and other infrastructure.
By Friday, Brent North Sea crude for November delivery rose to 79.55 dollars a barrel on Friday, from 79.17 dollars a week earlier. New York's main oil futures contract, light sweet crude for delivery in November, rose to 82.10 dollars a barrel, from 81.74 dollars a week earlier.
PRECIOUS METALS: The price of gold surged Friday to the highest level since January 1980 as the precious metal was boosted by the sliding US dollar. On the London Bullion Market, gold prices leapt as high as 745.84 dollars an ounce.
"765 dollars remains our initial target however as we enter the traditionally strongest period for physical demand, and as investors/speculators continue to factor gold into their portfolios there is the potential to see gold as high as 800 dollars," said James Moore of thebulliondesk.com. Gold is also winning support from record crude oil prices, which spark fears over inflation. Gold is seen as a store of value and a hedge against inflation.
Other precious metals gained from gold's surge, with the price of platinum nearing its all-time high. Platinum on Friday struck 1,386.00 dollars an ounce on the London Platinum and Palladium Market, a level last seen in November 2006 when the precious metal had struck a record high 1,402.50 dollars.
Platinum is used by the jewellery industry and in the manufacture of catalytic exhaust units for autos. The price of platinum has jumped by almost 20 percent in value over the past twelve months.
On the London Bullion Market, gold rose to 743 dollars an ounce at Friday's late fixing, from 737 dollars a week earlier. Silver increased to 13.65 dollars an ounce at Friday's late fixing, from 13.47 dollars a week earlier.
On the London Platinum and Palladium Market, platinum rocketed to 1,377 dollars an ounce at the late fixing Friday, from 1,332 dollars a week earlier. Palladium climbed to 343.75 dollars an ounce, from 340 dollars.
BASE METALS: Base metals prices gained from the weak dollar, while lead struck an historic high in London trading on Thursday also thanks to supply difficulties.
"Along with supportive (supply and demand) fundamentals, the weakening US dollar is helping to fuel base metal price gains," Barclays Capital analysts said. The price of lead for delivery in three months rose to an historic 3,520 dollars a tonne on the London Metal Exchange. On Friday, the price of copper for delivery in three months advanced to 8,098.00 dollars a tonne on the London Metal Exchange, from 8,009.50 dollars a week earlier.
-- Three-month aluminium prices gained to 2,518 dollars a tonne, from 2,437 dollars.
-- Three-month nickel prices fell to 31,450 dollars a tonne, from 32,799 dollars.
-- Three-month lead prices increased to 3,380 dollars a tonne, from 3,347 dollars.
-- Three-month zinc prices rose to 3,080 dollars a tonne, from 2,905 dollars.
-- Three-month tin prices climbed to 15,520 dollars a tonne, from 15,375 dollars.
COCOA: Cocoa prices again made strong gains owing to concerns over tight supplies in leading producer Ivory Coast. "The unchanged forecast of a healthy Ivorian crop is starting to weigh on the market," Sucden analysts said.
By Friday on the Liffe, London's futures exchange, the price of cocoa for December delivery grew to 999 pounds a tonne, from 990 pounds a week earlier. On the New York Board of Trade (NYBOT), the December contract advanced to 2,025 dollars a tonne, from 1,983 dollars the previous Friday.
COFFEE: Coffee prices steadied in London and New York. By Friday on the Liffe, Robusta quality for November delivery increased to 1,910 dollars a tonne, from 1,874 dollars one week earlier. On the NYBOT, Arabica for December delivery decreased to 128.15 US cents a pound, from 131.60 cents.
SUGAR: Sugar prices dropped in London but rallied in New York amid expectations of a large surplus for the sweetener. By Friday on the Liffe, the price per tonne of white sugar for December delivery dipped to 280.50 pounds, from 281.00 pounds a week earlier.
On the NYBOT, the price of unrefined sugar for March delivery increased to 10.12 US cents a pound, from 9.85 cents for the October contract a week earlier. The October contract had been the most traded the previous week.
RUBBER: Rubber prices rose marginally this week to maintain gains for eight straight weeks. Surging crude oil prices - which makes synthetic rubber more expensive - continued to lend support, an official from a rubber producing firm said. By Friday, the Malaysian Rubber Board's benchmark SMR20 rose to 216.70 US cents per kilo, from 216.60 the previous week.
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