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ounce last week, while oil bounced to a one-year peak, as the US
currency crumbled in value against the European single currency. A
fading US unit makes dollar-priced raw materials, like gold and oil,
cheaper for investors holding stronger currencies. "So far, dollar
weakness has helped lift a number of different assets: crude oil,
precious metals, copper and equities," said GFT Global Markets
analyst David Morrison. Nevertheless, commodity markets were boosted
this week by mounting hopes of a recovery in the world economy.
PRECIOUS METALS: The price of gold hit a record 1 , 070.80 dollars
per ounce on Wednesday, as the precious metal was boosted by the
weak dollar, before pulling lower on profit-taking. The latest
pinnacle was forged as the euro surged above 1.49 dollars for the
first time since August 2008. It subsequently rallied to a 14-
month high of 1.4968 on Thursday. In recent days and weeks, gold has
enjoyed a record-breaking run as the tumbling dollar has stimulated
demand. The glamorous yellow metal is used in jewellery, dentistry
and electronics. Gold, viewed as a safe-haven investment, has won
back favour in recent months as the global economy struggles out of
its worst slump in decades. In the wake of gold's stellar run, sister
metal silver hit a 14- month peak of 18.08 dollars an ounce.
Palladium reached the highest points since August 2008 , while
platinum scaled a level last seen in September last year. By late
Friday on the London Bullion Market, gold eased to 1 , 047.50
dollars an ounce from 1 , 051.50 dollars a week earlier. Silver
slipped to 17.31 dollars an ounce from 17.63 dollars. On the London
Platinum and Palladium Market, platinum climbed to 1 ,346 dollars an
ounce at the late fixing on Friday from 1 ,337 dollars. Palladium
firmed to 326 dollars an ounce from 323 dollars. OIL: The price of
oil struck a one year-high above 78 dollars thanks to the weak US
dollar and signs of a pick-up in energy demand, traders said. New
York's main contract, light sweet crude for November delivery, hit
78.17 dollars a barrel on Friday -- the highest level since October
14 , 2008. BASE METALS: Base metals prices steadied after winning a
boost earlier this week from the plunging dollar. So far this year,
prices have soared on solid demand from emerging economies despite
the global economic downturn. The worldwide financial crisis that
erupted in late 2007 and dragged most major economies into
recession sent prices of industrial, or base, metals tumbling in
2008. However, demand has returned, notably from China and India,
helping to boost prices, according to movers and shakers attending
the London Metal Exchange (LME) Week, an annual industry event that
ended on Friday. LME metals prices have soared in 2009 , with copper,
lead and zinc doubling since the start of January. The plight of the
battered world economy is closely intertwined with base metals
because the likes of aluminium, copper, lead and zinc are key
resources for modern industry. SUGAR: Sugar futures rose but held
below the 28- year high of 640.50 pounds per tonne that was struck
earlier this month on concerns over tight supplies. By Friday on
LIFFE, the price of a tonne of white sugar for delivery in March rose
to 605. 90 pounds from 573 pounds a week earlier. On NYBOT, the
price of unrefined sugar for March advanced to 23.11 US cents a
pound from 22.62 cents. GRAINS AND SOYA: Prices climbed as recent
freezing weather in key producer the United States threatened to
reduce harvests and cut supplies. The market also increased on the
back of the struggling US dollar. "Freezing temperatures covered
portions of the US midwest this past weekend," said Morgan Stanley
analyst Hussein Allidina. "In multiple states, temperatures dropped
below the 28 degrees Fahrenheit (-2.2 Celsius) -- a temperature at
which some yield loss is certain, particularly given the much delayed
crop. Wheat for December gained to 5.05 dollars a bushel from 4.68
dollars. COFFEE: Coffee futures gained ground. By Friday on LIFFE,
Robusta for delivery in January rose to 1 ,501 dollars a tonne from
1 , 484 dollars a week earlier.
