LONDON, 21 March 2004 — Oil prices gushed higher this week with US crude smashing past $38 for its highest close in 13 years, fueled by renewed fears over terrorism and shortages of US stocks.
Gold: Gold prices shot to their highest level for a month, benefiting from a weaker dollar and the metal’s status as a safe-haven in the wake of bloody bombings in Madrid and Baghdad. Gold is closely linked to the dollar, so that when the US currency suffers the price of the precious metal tends to rise. “Strong buying interest has returned to gold again, arguably for the first time since early February, fueled by the combination of security concerns following the bombings in Madrid and Baghdad and indications the massive Japanese intervention to restrain yen appreciation may be wound back,” Barclays Capital analyst Kamal Naqvi said.
The dollar hit a four-week low against the yen and struggled against other currencies on Thursday amid increasing speculation that authorities in Tokyo would cool moves to contain the rise of the Japanese currency.
By Friday afternoon, gold prices stood at $412 an ounce on the London Bullion Market against $398 a week earlier.
Silver: Silver prices hit a new six-year high to remain above the symbolic $7 per ounce mark thanks to robust Chinese demand and buying by speculative funds.
“The performance of silver was even more impressive than gold,” Naqvi said, noting however that the precious metal’s rally was forcing some customers to seek cheaper alternatives. The silver price stood at $7.425 per ounce on the London Bullion Market on Friday against $7.205 a week earlier.
Platinum and Palladium: Platinum and palladium fell as dealers cashed-in on the precious metals’ recent highs. “The platinum group metals, in contrast to the rest of the precious metals, have struggled for direction,” Naqvi said. Platinum prices had scaled new 24-year highs and palladium one-year bests a week earlier.
Palladium traded at $279 per ounce from $282 a week earlier on the London Platinum and Palladium Market. Platinum prices fell to $893 per ounce on Friday from $910.
Base Metals: Base metal prices headed upward thanks to a fall in stocks and strong Chinese demand.
By late Friday, three-month copper prices stood at $3,000 per ton on the London Metal Exchange from $2,855 a week earlier. Three-month aluminum prices were steady at $1,671.50 per ton from $1,678. Three-month nickel prices were $14,175 per ton against $12,800. Three-month zinc prices lifted to $1,145 per ton from $1,123. Three-month lead prices climbed to $875 per ton from $855. Three-month tin prices stood at $7,950 per ton from $7,200.
Oil: Oil prices raced ahead on a market shaken by fears of renewed terrorism and shortages in stocks ahead of a planned output cut by OPEC. US crude oil prices soared above $38 to their highest close in 13 years on Wednesday.
On Friday, the price of benchmark Brent North Sea crude oil for April delivery stood at $33.29 a barrel in London from $32.50 a week before. In New York, the reference light sweet crude April contract traded at 38.10 against 36.60 a week earlier.