Gold prices continued to scale heights and managed to hit yet another all time high on Friday, making it the third time last week, following weak economic signals. Data pointed out towards weak consumer confidence of US, the largest economy, which sparked the need for safety for investors and resulted in it attracting buying interest in the yellow metal.
The speculation of further quantitative easing by the Federal Reserve also supported the argument of safety. COMEX December gold futures settled up $3.70 at $1,277.50 an ounce on the COMEX division of the NYMEX. Central bank interest in the yellow metal also gave reason for further buying of gold.
Data showed that Thailand increased its gold holdings by 0.5 million ounces, or one fifth, to 3.2 million ounces in July by the way of open market operations. Holdings in the world's largest gold backed exchange-traded fund, SPDR Gold Trust rose 6.079 tonnes to 1,300.825 tonnes by Sept 17, the highest since the beginning of the month.
ENERGY
Crude oil prices slid last Friday, falling for the fourth consecutive session, as weak economic signals and slack demand season left the commodity to sink. Light, sweet crude oil for October delivery on the New York Mercantile Exchange settled down 91 cents, or 1.2%, at $73.66 a barrel.
That is the lowest settlement price since Aug. 31. The oversupply concerns also contributed towards weighing crude oil prices down. Enbridge Energy Partners said its crude oil pipeline that can carry 670,000 barrels a day of Canadian crude oil to the U.S. Midwest returned to normal operations Friday after a week-long shutdown to repair a leak. The line has capacity to handle one-third of U.S. imports of crude from Canada, the U.S. biggest foreign supplier.
Natural gas prices gave away some of its gains on Friday as profit booking that emerged at higher level weighed the sentiment down. Natural gas for October delivery on the New York Mercantile Exchange settled 3.8 cents, or 0.9% lower, at $4.024 a million British thermal units.
The inventories of natural remained at record highs, which also helped pull prices down. Gas inventories last week stood at 3.267 trillion cubic feet, the Energy Information Administration said Thursday, 6.2% above the five-year average. The number of rigs drilling for gas increased by two this week, to 982, oil-services firm Baker Hughes Inc. (BHI) said Friday, the third consecutive week of increases in the rig count.
BASEMETALS
Base metals prices were largely trading in ranges as a weaker dollar offset the weakness following poor economic data releases. Data from US, the second largest consumer of copper, showed that consumer confidence climbed down, coupled with possible quantitative easing by the Fed kept the prices without much strength.
However, the weaker US dollar rendered commodities denominated in the currency cheaper to investors, resulting in it bringing gains to copper. In addition, the stocks of copper continued to fall the London Metal Exchange, pointed towards the presence of demand for the metal.
Overnight, copper stocks in London Metal Exchange-registered warehouses fell by 2,350 mt to 387,150 mt.
