NEW YORK, April 28: US gold sprung back from a three-week low to end up on Friday, helped by the dollar’s record low against the euro and strong oil prices. Copper rose a notch, awaiting the outcome of a threatened mine strike in Peru.
In agricultural markets, corn fell, extending losses from Thursday. Crude prices jumped two per cent after an apparently foiled al Qaeda attack renewed concerns about the security of global oil supplies.
GOLD: Most-active gold for June delivery on the COMEX division of the New York Mercantile Exchange settled up $3.80 at $681.80 an ounce. It touched a low of $673.80 in early electronic trade -- marking its cheapest level since April 4 -- before rebounding to a session high of $683.
Although gold had come precariously close to cracking the $700-an-ounce psychological resistance in the past week, analysts said speculative wind behind the precious metal had subsided and momentum declines may continue.
Spot gold was quoted at $681.30/1.80 an ounce in New York’s late afternoon trade, up from Thursday’s late quote of $674.40/4.90.
COPPER: In copper, COMEX’s most active contract for July delivery closed up 2.35 cents, or 0.7 per cent, at $3.5325 a lb after touching a session high of $3.55.
Copper prices held up on concerns that miners in Peru, the world’s third largest copper producer, may strike by Monday if they fail to negotiate with the government for better benefits.
But the impact from the strike itself may not last beyond a few days, traders said, adding that Chinese demand for copper and falling stocks of the metal in LME warehouses were more important factors in the longer run.
OIL: Crude oil prices rose after Saudi Arabia said it had foiled an Al Qaeda-linked plot to attack the kingdom's oil facilities, arresting more than 170 suspects.
The news rekindled concerns over the vulnerability of world energy supplies.
The London Brent crude closed up by 76 cents at $68.41 a barrel.
US crude rose $1.40 to $66.46.
CORN FALLS: Corn futures on the Chicago Board of Trade ended down on outlooks for drier weather that could boost corn seeding works in the US Midwest over the next few days, after this week’s rains slowed sowing.
CBOT corn for May delivery ended down 1/2 cent at $3.64-1/4 per bushel. New crop for December fell 6-1/2 cents to $3.67-1/2 a bushel.—Reuters
