A summary of trading in key commodities markets overseas:
ENERGY
Oil prices closed mixed on Friday after a positive US jobs report spurred profit-taking in New York, while the global market remained bolstered by tensions between key producer Iran and the West.
New York’s main contract, West Texas Intermediate (WTI) for delivery in February, shed US 25 cents to close at $US101.56 per barrel.
In London, Brent North Sea oil for delivery in February gained 75 US cents to $US112.50 per barrel.
The New York futures contract had opened 35 US cents higher before running out of momentum.
Bart Melek, chief strategist at TD Securities explained that traders had already priced in the December jobs report.
The WTI contract on Wednesday had hit $US103.22, the highest level since early May, as traders anticipated an improvement following recent encouraging jobs news.
The price dip Friday was “more profit-taking than a disappointment” with the figures, he added.
The US unemployment rate dropped to 8.5 per cent in December, the lowest level in nearly three years, as hiring surged more than expected, official data showed on Friday.
On Friday, the Fars news agency reported that the naval commander of Iran’s powerful Revolutionary Guards said Tehran would hold fresh military exercises in and around the strategic Strait of Hormuz within weeks.
The waterway is the world’s “most important chokepoint” for oil tankers, according to the US Energy Information Administrations. Some 20 per cent of the world’s sea-transported oil flows through the narrow channel at the entrance to the Gulf.
Iran’s regular navy completed 10 days of wargames to the east of the strait, in the Gulf of Oman, earlier this week with tests of three anti-ship missiles.
PRECIOUS METALS
Gold eased, snapping a five-session winning streak, but trade was choppy as investors digested the US jobs report.
The metal still notched its biggest weekly gain in five weeks after it broke ranks with a slumping euro in the last two days. Bullion has now more than recouped last week’s losses that briefly sent it into bear market territory.
Trading volume was decent after data showed US nonfarm payrolls increased 200,000 in December and the unemployment rate dropped to a near three-year low of 8.5 per cent, offering the strongest evidence yet the economic recovery was gaining steam.
Spot gold fell 0.3 per cent to $US1,617.19 an ounce by 2.32pm EST (0632 Saturday AEDT).
It was up three per cent for the week, its first weekly rise since early December.
US gold for February delivery settled down $US3.30 at $US1,616.80.
Trading volume was strong for a fourth straight day, about 10 per cent above its 30-day average, preliminary Reuters data showed.
Spot silver fell 1.9 per cent to $US28.72 an ounce, headed for a weekly climb of nearly four per cent — its biggest rise in a month.
Platinum group metals fell, with platinum down 0.9 per cent for the day to $1,397.40 an ounce, and palladium dropped 3.9 per cent to $US610.43 an ounce.
BASE METALS
Copper edged higher in a muted response to the US employment data.
The economically-sensitive metal barely budged on the week as investors were caught between an upbeat stream of US data and lingering concerns about debt default risks and funding stress in the euro zone.
Copper reversed earlier losses and tip-toed into positive territory, slowed by a rallying dollar from data that showed US nonfarm payrolls rose 200,000 in December and the unemployment rate dropped to a near three-year low of 8.5 per cent.
London Metals Exchange (LME) benchmark copper rose $US40 to end at $US7,580 a tonne.
In New York, the key March COMEX contract settled with a 0.85 US cent gain to $US3.4350 per lb, after moving between $US3.3935 and $US3.4650.
Among other metals, aluminium ended up $US33 at $US2,069 a tonne, supported by news of production cuts.
