January 22, 2006	Sunday	Zilhaj 21, 1426

LONDON, Jan 21: Gold prices hit another 25-year high this week, while oil prices raced to four-month peaks on supply fears stoked by tensions from Iran, Nigeria and the purported new al-Qaeda threat to the United States.

Metal prices mostly jumped higher on soaring investment demand, with platinum, copper, lead and zinc striking historic records and aluminium at a 17-year high.

Sugar reached levels not seen for over 24 years, while cocoa rallied to a fresh ten-month high point in London.

Lifted by increased demand, the Commodities Research Bureau’s index of 17 commodities hit a record on Friday of 345.16 points — the best level since its creation in 1957. That compared with 334,86 the previous week.

GOLD: Gold prices struck 568.10 dollars per ounce on Friday, the highest level since January 1981, profiting from massive investment demand amid simmering global geo-political tensions.

“Gold and the other precious metals’ safe-haven properties shone out as the airing of a tape recording on al-Jazeera, and believed by CIA analysts to be by Osama bin Laden, warned of fresh attacks on the US,” said James Moore of specialist metals website TheBullionDesk.com.

On the London Bullion Market, gold prices soared to 567.25 dollars per ounce at Friday’s late fixing from 548.25 dollars the previous week.

SILVER: Silver prices pushed higher in the wake of gold and approached an 18-year high before running into profit-taking.

In Tuesday trading, silver neared 9.30 dollars per ounce, a level last seen June 1984. Silver shot higher “before the market went into profit taking mode”, Moore said.

On the London Bullion Market, silver prices rose to 9.08 dollars per ounce at Friday’s fixing, from 9.01 dollars the previous week.

PALLADIUM AND PLATINUM: Enthusiastic buying from investment funds sent platinum prices to a historic peak, while palladium firmed.

Platinum hit a record 1,051.50 dollars per ounce on Tuesday. The metal has gained 8.0 per cent since the start of the year.

Demand for the metal, used in jewellery and catalytic converters for automobiles, has jumped as investors sought refuge for funds amid tensions caused in part by Iran’s disputed nuclear program.

On the London Platinum and Palladium Market, an ounce of platinum rose to 1,045 dollars per ounce at the late fixing on Friday, from 1,027 dollars the previous week.

Palladium reached 278 dollars per ounce, from 273 dollars previously.

BASE METALS: Prices of copper, zinc and lead smashed historic records this week on soaring demand, while aluminium reached a 17-year high.

On Thursday, Copper prices touched 4,630.50 dollars per ton — the highest since copper was first listed in its current format in 1870.

Zinc prices soared to 2,177 dollars per ton on Friday while lead also hit 1,273 dollars.

Meanwhile, aluminium prices raced to 2,430 dollars per ton, its best performance since January 1989.

“Given the extent of the rebound in the base metals, highlighted by zinc’s move to new high ground, and reports that funds are still embarking on investing in commodities... it suggests there is still room on the upside,” said William Adams, of website BaseMetals.com.

On Friday, three-month copper prices on the London Metal Exchange jumped to 4,579 dollars per ton from 4,562 dollars the previous week.

Three-month aluminium prices rose to 2,390 dollars per ton from 2,378 dollars.

Three-month nickel prices slipped to 14,700 dollars per ton from 14,800 dollars.

Three-month lead prices climbed to 1,270 dollars per ton from 1,190 dollars.

Three-month zinc prices leapt to 2,172.50 dollars per ton from 2,053 dollars.

Three-month tin prices climbed to 7,110 dollars per ton from 6,875 dollars.

OIL: World oil prices surged this week beyond four-month high points as the market was shaken by al-Qaeda’s apparent threat to the United States, and supply worries persisted over Nigeria and Iran.

New York’s main contract, light sweet crude for delivery in February, on Friday hit 68.00 dollars per barrel. In London the same day, Brent North Sea crude jumped past 66 dollars for the first time since September 6.

Global demand for crude, meanwhile, was forecast to rise by 1.9 per cent in 2006 to 84.8 million barrels per day (bpd), the Organization of Petroleum Exporting Countries said in a report Friday.

The US has rejected a truce offer from al-Qaeda chief Osama bin Laden, made in an audiotape broadcast over Al-Jazeera television, despite a threat of more attacks on its soil.

Elsewhere, Nigerian oil workers’ unions threatened Friday to withdraw their members from the troubled Niger delta region if the government fails to stop continuing violence there. Armed rebels have threatened further attacks.

And Iran, the second-biggest crude producer in OPEC, has asked the cartel to reduce its oil production quota by one million barrels per day from April, Tehran’s representative said ahead of a January 31 output meeting.

The comments came amid a simmering crisis over Iran, with Tehran warning the West that UN sanctions over its controversial nuclear programme could provoke a world oil crisis and even higher prices.

“There is nothing in the market that says prices should come off at the moment,” said Man Financial trader Lee Elliott.

There was a “strong possibility” of new records as early as the end of next week, he added.

In London, a barrel of Brent North Sea crude for delivery in March raced to 66.12 dollars late Friday, from 62.60 dollars the previous week.

In New York, a barrel of crude for delivery in February rocketed to 67.65 dollars from 63.45 dollars.

RUBBER: Rubber prices stretched higher.

“Prices went up quite strongly this week. Production is slightly better than it was a week ago, because rains have stopped” in major producing Asian countries, said Rashid Ahmed, a trader with Corrie MacColl.

On TOCOM, Tokyo’s commodity exchange, natural rubber for February delivery climbed to 228.20 yen on Friday, from 213 yen from the previous week.

Singapore’s RSS 3 March contract rose to 194.25 cents on Friday, from 185.50 cents one week ago.

COCOA: Cocoa prices soared to a ten-month high in London and a four-month peak in New York on rising tensions in major producer Ivory Coast, before falling on profit-taking.

“Despite the pullback the market is keeping a close eye on developments in Ivory Coast,” Sucden analysts said.

The price of cocoa in London hit 947 pounds per ton on Thursday, the best level since March 2005. The same day, New York prices struck 1,600 dollars per ton, the highest since September 2005.

Clashes between UN troops and supporters of Ivory Coast President Laurent Gbagbo left four Ivorians dead Wednesday as political tensions increased in the divided west African nation.

Ivory Coast produces between 30-40 per cent of the world’s cocoa supply.

On the LIFFE, London’s futures exchange, the price of cocoa for March delivery rose to 916 pounds on Friday, from 900 pounds a week earlier.

On the New York Board of Trade (NYBoT), the March contract jumped to 1,545 dollars per ton on Friday, from 1,520 dollars.

COFFEE: The price of coffee firmed this week amid profit-taking after recent seven-month highs.

“With concerns about supply tightness due to flagging world production, falling stocks and rising consumption futures,” prices headed higher, Sucden analysts noted.

On LIFFE, Robusta quality for March firmed to 1,269 dollars per ton on Friday, compared with 1,228 dollars a week earlier.

On NYBoT, Arabica for March delivery stood at 122.80 cents per pound on Friday, from 119 cents.

SUGAR: Sugar prices leapt on keen investment demand, with New York striking a 24-and-a-half-year peak.

In New York, the price of unrefined sugar reached 17.21 cents on Friday, while London surged to 403.20 dollars the same day.

“US raw sugar has now almost doubled in just over nine months,” Sucden analysts said. “As long as oil prices remain strong demand for sugar, and in particular ethanol, is set to outstrip supply.”

Sugar cane is used to produce ethanol, a cheaper alternative to gasoline (petrol).

By Friday on LIFFE, the price of a ton of white sugar for March delivery increased to 397.90 dollars, from 334.50 dollars the previous week.

On NYBot, the price of unrefined sugar for March delivery leapt to 16.88 US cents per pound on Friday, from 15.04 cents.

GRAINS AND SOYA: Soya and grain prices mostly fell as weather conditions improved in South American producing countries, especially in Argentina and Brazil.

Rainy weather is favourable to crop growth, but increased supply results in falling prices.

On the LIFFE, the price of a ton of wheat for March delivery stood at 70 pounds late Friday, unchanged from a week earlier.

On the Chicago Board of Trade, the price of wheat for March delivery fell to 3.253 US dollars per bushel on Friday, from 3.345 dollars.

Maize for March delivery slid to 2.05 dollars per bushel Friday, from 2.13 dollars.

March-dated soyabean meal — used in animal feed — slipped to 5.69 dollars per ton, from 6.71 dollars.

COTTON: The price of cotton increased.

Weekly exports of the commodity from major producer the United States were higher than expected, said Fimat analyst Philippe Pesque.

On the New York Cotton Exchange (NYCE), the March contract rose to 56.48 US cents per pound on Friday, compared with 55.44 cents a week earlier.

The Cotton Outlook Index of physical cotton stood at 58.65 cents on Thursday, from 58.90 cents the previous week.

WOOL: Prices climbed for the second successive week on keen global demand.

“The Australian wool market finished this week on a positive note with prices 3.8 per cent higher on average,” the Australian Wool Industries Secretariat said.

The Australian Eastern index stood at 6.73 Australian dollars per kilo on Thursday, compared with 6.49 Australian dollars per kilo the previous week.

The British Wooltops index, meanwhile, stood at 399 pence on Thursday, compared with 390 pence the previous week.—AFP