A summary of trading in key commodities markets overseas:
PRECIOUS METALS
Gold rose nearly one per cent to a one-month high, breaking ranks with the euro and equities, as evidence of strong physical demand from China fuelled fund buying after bullion’s recent sell-off.
The metal rose for a second day as the single currency hit a 16-month low against the dollar after ratings agency Fitch warned of dire consequences if the European Central Bank doesn’t take more action on Europe’s debt crisis.
Bullion has gained more than five per cent in 2012, appearing to halt a strong, positive link with riskier assets. In the previous two months, gold had tended to fall when the dollar strengthened, trading in virtual lockstep with the euro.
Spot gold was up 0.7 per cent at $US1,644.36 an ounce by 1200 EST (0400 Thursday AEDT). US February gold futures gained $US13.80 at $US1,645.30 an ounce.
Gold’s gain brought current prices above their 200-day moving average around $US1,635 an ounce.
Silver was up 0.2 per cent on the day at $US30.09 an ounce.
Platinum was set for a third daily gain, up two per cent on the day at $US1,490.03 an ounce.
Palladium was up 0.9 per cent at $US639.47 an ounce.
BASE METALS
Copper rose to its priciest level in more than a month, building on the prior session’s three-per cent price surge, and is near key technical resistance that could trigger further gains if pierced.
Copper’s gains bucked broader market trends toward safer haven assets like gold and bonds after a warning from Fitch Ratings agency about troubled European debt reinforced fears about the impact of the region’s funding crisis on the global economy.
London Metal Exchange (LME) three-month copper rose $US40 to end at $US7,785 a tonne, after failing to hold on to an earlier trade through its 100-day moving average.
In New York, the key March COMEX contract firmed 3.30 US cents, or about one per cent, to settle at $US3.5460 per lb, after dealing between $US3.4705 and $US3.5565.
Three-month aluminium edged up $US1 to endeat $US2,165 a tonne.
ENERGY
Oil prices slipped on Wednesday after official data revealed that crude inventories rose by much more than expected in the United States last week, but losses were limited by tensions over Iran and unrest in Nigeria.
New York’s main contract, West Texas Intermediate crude for delivery in February, fell 56 cents to $US101.68 ($A98.88) a barrel.
Brent North Sea crude for February dipped 24 cents to $113.02 in late London deals.
The US Department of Energy said that crude stockpiles jumped by five million barrels last week in the world’s biggest oil consumer – five times the amount forecast by analysts.
Ahead of the data, prices were mixed as traders continued to track events in Iran amid fears that the Islamic republic could decide to halt its oil exports to the West.
Iran has threatened to close the strategic Strait of Hormuz should the West go ahead with plans to slap a ban on imports of Iranian oil as part of sanctions to stop the country’s disputed nuclear program.
Hormuz links the Gulf with the Gulf of Oman – through which much of the region’s oil is transported.
