LONDON, 11 January 2004 — Gold hit a 15-year high, while silver and platinum were also hauled to multi-year peaks in a week dominated — once again — by the effect of a plunging US dollar. Meanwhile oil prices rocketed to their strongest level since just before the Iraq war in March as traders worried about the combined effect of freezing winter weather in the United States and 25-year low oil stocks.

Gold: Gold hogged the headlines again this week, soaring to levels not seen since December 1988 thanks to the precipitous fall in the value of the US dollar.

On Fridya, gold prices stood at $423.35 an ounce on the London Bullion Market against $415.25 a week earlier.

“There could be few starts to the year as strong as we have seen so far in 2004,” said Barclays Capital analyst Ingrid Sternby.

The high point was on Tuesday, when the metal hit $428 on the morning fixing, reaching a peak spot price of $430.40. It came as the euro climbed above 1.28 for the first time in its five-year history, leaving gold — denominated in the depreciating US unit — more affordable to non-US purchasers. Gold later slipped back in line with the euro, but more gains were looking likely, Sternby said. “Much continues to depend on the path of the euro, but if the relationship continues as it has since 2002, then a euro of $1.40 would push gold toward $450 an ounce, and the current momentum suggests one should be very wary of betting against that,” she said.

Silver: Silver was pulled to a near-six year high, once again riding in the slipstream of gold. After exceeding $6 an ounce the previous week for the first time since May 1998, on Tuesday silver hit a peak of $6.280 per ounce, its best since April of that year.

Buoyed also by the potential benefits of its industrial uses during a global economic recovery, this year silver might begin to step out of its more valuable cousin’s shadow, analysts said. “Silver will punch more weight in 2004,” said Mitsui Global Precious Metals analyst Andy Smith.

However in the short-term there was a limit to how far silver could continue rising simply because of gold, warned James Moore from specialist website TheBullionDesk.com. “Despite silver gaining on the back of gold, with the metal lacking the strong fundamentals of gold and platinum, a failure to break above $6.30 in the near future could (see) a test of $6 as traders unwind some of their longs,” he said.

The silver price stood at $6.245 per ounce on the London Bullion Market on Friday against $5.985 a week earlier.

Platinum and Palladium: Platinum prices reached a 23-year high, with even struggling palladium eking out a modest gain, due to the plunge in the US dollar and a corresponding rise in the value of the South African rand. By Friday, the platinum price stood at $851 per ounce on the London Platinum and Palladium Market against $815.50 a week earlier. Palladium traded at $201 an ounce from $192. “Platinum has not only benefited from the dollar, but by another currency: The strength of the South African rand, which increases the costs and thus reduces the profits of the South African producers,” said Societe Generale analyst Stephen Briggs.

Base Metals: Base metals started the week well thanks to the softer dollar, along with good demand from China and the threat of production-hitting strikes, before profit-taking took a hold on Wednesday and eroded the gains. By Friday, three-month copper prices were steady at $2,326 per ton on the London Metal Exchange from $2,327 a week earlier. Three-month aluminum prices slipped to $1,594 per ton from $1,614. Three-month nickel prices lost to $15,590 per ton from $6,600. Three-month zinc prices edged down to $1,020 per ton from $1,028.50. Three-month tin prices slipped to $6,290 per ton from $6,550. Three-month lead prices fell to $717 per ton from $740.

Oil: Oil prices surged to levels not seen since before the Iraq war, as plummeting temperatures in the United States left traders fretting about oil stocks already languishing at quarter-century lows. By Friday, the price of benchmark Brent North Sea crude oil for February delivery stood at $31.52 a barrel in London from $29.32 a week before.

In New York, the reference light sweet crude January contract was at $34.62 on Wednesday against $33.78 a week before.