Oil closes in on $100, gold rebounds
The price of crude oil surged to a record peak close to 100 dollars a barrel in New York trading this week on the back of a falling US currency and tight energy supplies.
Precious metal futures mostly rebounded as the dollar tumbled to fresh record low points against the euro, which makes commodities priced in the US unit cheaper for buyers using stronger currencies.
On Friday, the European single currency struck 1.4967 dollars, the highest level since the euro's creation in 1999, on expectations of slower US economic growth and more cuts to US interest rates.
OIL: New York crude hit an historic 99.29 dollars a barrel this week, while London's Brent North Sea crude struck an all-time peak of 96.53 dollars.
Oil futures failed to breach 100 dollars a barrel, despite US government data which showed that US energy stockpiles fell more heavily than expected last week.
The rally fizzled out amid the US Thanksgiving holiday weekend, with New York's financial markets shut on Thursday.
The market was subdued on Friday amid indications that some member nations of the 13-strong crude exporters' group OPEC might increase output, which would have a dampening effect on the market.
PRECIOUS METALS: Gold and silver prices rebounded as the dollar slumped in foreign exchange trading.
Higher oil prices spark inflationary concerns, while gold is regarded as a haven in times of economic trouble.
Silver prices rose to 14.55 dollars an ounce, from 14.45 dollars.
BASE METALS: Base metals prices extended losses owing to higher inventories and fears about slowing economic growth.
"Prices have now fallen to levels which are starting to look attractive from a buying perspective," UBS analyst Robin Bhar said.
COFFEE: Coffee prices slid in London because of technical reasons.
SUGAR: Sugar prices traded mixed amid forecasts of a large supply surplus for the sweetener.
"The rally in prices at the start of 2005/06, which has resulted in increased cane plantings, is the main driver behind the continued imbalance between supply and demand," said analysts at the broker Czarnikow.
By Friday on the LIFFE, the price per tonne of white sugar for March delivery edged up to 288.60 pounds, from 287.30 pounds.
GRAINS AND SOYA: Maize and soya prices rallied, while wheat recovered further.
"The weaker US dollar is supportive," Allendale analyst Joe Victor said, adding that high oil prices were also supporting prices.
Demand for maize and soya rose, as the commodities are used in the production of biofuels which are cheaper than crude oil.
By Friday on the Chicago Board of Trade, the price of maize for December delivery climbed to 3.85 dollars a bushel, from 3.80 dollars a week earlier.
Wheat for December delivery grew to 8.09 dollars a bushel, from 7.50 dollars.
RUBBER: Rubber prices rebounded on tight supplies and soaring oil prices.
"We forecast the price of rubber to go up due to wet weather amid strong demand," said an official at a rubber-producing firm.
WOOL: The Australian wool market finished 1.3 percent higher on average, with strong buying interest from China and Europe.
"It was a good market this week," the Australian Wool Industries Secretariat said.
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