|
|
|
| June 17, 2002 | Monday | Rabi-us-Sani 5, 1423 |
World commodity report
Gold prices remained high at $326 a troy ounce in the London market, as the steady decline in US stock markets and the dollar offered ongoing support for the precious metal.
Share prices came under increased pressure after a bleak earnings outlook issued by chipmaker Intel earlier, and the dollar touched a new 16-month low of 94.90 cents to the euro early last week. the military stand off between India and Pakistan and Israel’s storming of Palestinian President’s headquarters reinforced interest in gold.
With the precious metal providing a safe. haven, analysts were of the view that the rally which saw gold fixed in London at its highest level since October 1997, probably had further to run.
Meanwhile platinum prices continued to rise, aided by a softening dollar. The metal had been lifted alto by fresh threats of a strike in South Africa which could hit production as early as next month. Platinum prices rose to $564 per ounce, while palladium rose to $352 per ounce from $351.3 a week earlier.
Dealers said there did not appear to be any rush to cash in the large long positions accumulated in gold and sliver this year.
The worlds largest and third-largest gold producers signalled on June 6 that Hey intended to continue reducing their hedge books to take advantage of the rallying metal price. Newmont Mining said it expected to reduce gold hedge positions of the former Normandy Mining by a further one million ounces this year.
Newmont acquired Normandy in February, saying it would eventually close out the Australian miner’s entire hedged position. “Over time, we will streamline, simplify and reduce the hedge book we inherited from Normandy so that our shareholders can benefit even more from rising gold prices,” said Wayne Murdy, chief operating officer.
Kelvin Williams, AngloGold executive director, marketing, said the third-largest producer had reduced its book by 52 tonnes in the first three months of 2002 and by 53 tonnes in the previous quarter.
Oil price stabilized at the close of test week at $24.10 from $24.23 a barrel a week earlier. Prices felt on reports of another surge in US inventories. The US energy department said crude stocks rose to 6.0 million barrels or 1.9 percent to 324.9 million.
The rise in crude stocks appeared to cast fresh doubt on whether the rapid pace of US economic expansion reported in the first quarter would be maintained and then translated into higher demand from the world’s biggest oil consuming nation.
And with crude exports to the United States still in seemingly plentiful supply, despite cutbacks by members of the Organisation of Petroleum Exporting Countries, many analysts believe oft prices are still unsustainably high.
According to some projections, the global coffee glut is expected to worsen considerably in 2002-03 because of higher production. Global output in 2002-03 is expected at 124 million 60kg bags, 10.8 percent up on the previous crop. With world consumption in 2002-03 estimated at 109.89 million bags, the global output surplus is seen surging to 14.14 million bags against 3.37 million in 2001-02.
Slight output falls in regions such as Asia and Central America are completely overshadowed by Brazil’s crop, estimated at 47.5 million bags. A projected year-on-year drop of 1.3 million bags in 2002-03 from Vietnam alone pales into insignificance in view of the dramatic rise in Brazilian output.
|
|
|
|
