LONDON, July 9: Commodities prices endured a roller-coaster ride this week after bombs ripped through London’s transport network, killing more than 50 people and fuelling concerns about the strength of global economic growth.
Oil prices hit fresh record high points above $62 per barrel as a hurricane threatened US oil rigs in the Gulf of Mexico.
The Commodities Research Bureau’s index of 17 commodities jumped to 314.48 points on Friday, from 299.52 points the previous week.
GOLD: Gold prices erased strong gains won in the aftermath of the London blasts.
Benefiting from its status as a safe-haven, gold jumped to almost $429 per ounce immediately after the capital’s tragedy that left 700 people injured, some seriously.
“Flight to safety buying lifted gold and silver to the highest levels in a week before coming back under pressure as the dollar regained its lost ground,” said James Moore, an analyst at the specialist website TheBullionDesk.com.
On the London Bullion Market, gold prices slumped to 424.40 dollars per ounce at the late fixing on Friday from $432.60 the previous week.
SILVER: Silver prices ended below $7.0 per ounce after losing Thursday’s strong gains.
“Silver like gold pushed higher to touch $7.04 in reaction to the terror activities,” Moore said.
On the London Bullion Market, silver prices fell to $6.945 per ounce at the late fixing Friday from $7.020 the previous week.
OIL: World oil prices endured volatile trading towards the end of the week, reaching fresh historic peaks above $62 per barrel on supply concerns before plunging on the fatal London bombings.
Crude futures tumbled Thursday on profit-taking as deadly explosions rocked London.
New York’s main contract, light sweet crude for delivery in August, dived by as much as $4.08 to as low as $57.20 per barrel.
This was shortly after the contract had hit $62.10 — the highest level since it was first traded in 1983 — as tropical storms threatened to bear down on US oil production facilities in the Gulf of Mexico.
In London, the price of Brent North Sea crude oil for delivery in August shed as much as 4.30 dollars on Thursday shortly after reaching a fresh record high of $60.70.
SUGAR: Sugar prices surged to seven-year high points in London and four-year peaks in New York on the back of robust demand.
In London, sugar reached 302.60 dollars per ton on Thursday, the highest level since January 1998. Prices peaked at 9.54 cents per pound in New York on Friday, a level not seen since 2001.
By Friday on LIFFE, the price of a ton of white sugar for October delivery soared to $300.40 from $267.20 a week earlier.
