LONDON, May 5: Nickel and lead prices struck record high points this week but oil futures fell as traders tracked tight supplies of world commodities.
BASE METALS: Base metals rebounded, with nickel and lead striking record highs and copper achieving a near one-year peak owing to tight supplies amid a major strike in Peru.
“The return of Asian players from holidays next week should see current gains being sustained and higher price levels are likely to be probed further,” UBS analyst Robin Bahr said.
Thousands of Peruvian miners started an indefinite, nationwide strike Monday to support demands for better wages, union leaders said.
Some 40,000 miners from 33 trade unions downed their tools, said Luis Castillo, the secretary general of the National Federation of Miners, Metal and Steel Workers.
“If the strike in Peru persists, the tight stocks situation could quickly turn critical,” BNP Paribas analyst David Thurtell said.
Amid the strike, nickel hit a record high 50,750 dollars a ton and lead struck an all-time peak of 2,090 dollars a ton.
On Friday, three-month copper prices jumped to 8,161 dollars a ton on the LME, from 7,700 dollars a week earlier.
Three-month aluminium prices rose to 2,830 dollars a ton from 2,817 dollars.
Three-month nickel prices increased to 50,700 dollars a ton from 47,900 dollars.
Three-month lead prices climbed to 2,080 dollars a ton from 1,991.50 dollars.
Three-month zinc prices gained to 4,084.50 dollars a ton from 3,685 dollars.
Three-month tin prices advanced to 14,225 dollars a ton from 13,200 dollars.
GOLD: Gold prices fell to a one-month low of 667.65 dollars an ounce on Wednesday as the dollar strengthened.
A stronger US unit decreases demand for dollar-denominated commodities, such as gold, since they become more expensive for buyers using other currencies.
Gold fought back, however, at the end of the week.
“Gold’s ability to hold above 670 dollars, coupled with the much improved technical picture is extremely positive for gold, with the metal now in a much better position to push towards 700 dollars,” said James Moore, an analyst at TheBulliondesk.com.
On the London Bullion Market, gold rose to 688.80 dollars an ounce at Friday's late fixing, from 677.50 dollars a week earlier.
SILVER: Silver followed in gold's wake, hitting a one-month low before recovering.
On the London Bullion Market, silver prices gained to 13.40 dollars an ounce at Friday's late fixing, from $13.35 a week earlier.
PALLADIUM AND PLATINUM: Palladium and platinum rose.
The sister metals are gaining from “the slow but growing interest in the recently launched ETF,” Moore said.
Exchange-traded fund products allow traders to invest money in the commodities sector, without trading on the futures market and committing themselves to the long-term delivery of the physical product.
ETF products tend to generate a sharp increase in demand by investors, which pushes up the price of the underlying physical asset.
On the London Platinum and Palladium Market, platinum climbed to 1,311 dollars an ounce at the late fixing Friday, from 1,281 a week earlier.
Palladium rose to 374 dollars an ounce, from 371 dollars.
OIL: World oil prices fell on profit-taking, but losses were limited by concerns about tight supplies amid a rash of kidnappings in major crude producer Nigeria and declining stockpiles of US motor fuel.
Investors are monitoring the latest developments in Nigeria, Africa's biggest oil exporter, where armed men have this week abducted at least 20 foreigners in three separate incidents.
Nigeria is the world's sixth-biggest oil exporter but its output is being severely hit by frequent kidnappings of foreign oil workers and attacks on pipelines.
Meanwhile dealers said that US gasoline (petrol) stockpiles remained in focus ahead of the US holiday driving season, which starts later this month.
US gasoline reserves fell 1.1 million barrels to 193.1 million last week and are down 34.1 million barrels or 15 percent since early February, according to data published this week by the US Department of Energy (DoE).
Despite concerns over stockpiles, oil producers' cartel OPEC on Wednesday said it saw no need to increase output, even as the International Energy Agency (IEA), the consumers watchdog, stressed the need to pump more crude.
By Friday in London, a barrel of Brent North Sea crude for delivery in June had dropped to 66.57 dollars, compared with 67.66 dollars a week earlier.
In New York, a barrel of crude for delivery in June slid to 63.13 dollars from 65.30 dollars.
GRAINS AND SOYA: Maize and soya prices rose, while wheat fell.
“Modest precipitation in parts of Europe, favourable crop progress data released by the USDA and preliminary results from the Wheat Council Quality Tour have somewhat alleviated market concerns, sending wheat prices slightly lower,” Morgan Stanley analyst Hussein Allidina said.
He added that delays in planting, owing largely to wet conditions in the region.—AFP
