All quiet on the metals front as dollar steadies on rate cut
AFP
August 27 2001 at 12:10AM
London - The US decision to cut interest rates for the seventh time this year failed to ignite global commodity prices last week, with many markets still quiet in the northern hemisphere summer.
Some base metals managed a gentle comeback in what one expert called "bouncing along the bottom".
Oil prices inched up as US crude and petroleum levels dropped.
Gold prices fell after the dollar found its feet, but the precious metal stood to gain if the US unit weakened further, experts said.
By Friday afternoon, an ounce of gold was fixed at $272,80 from $277,45 the previous week.
BNP Paribas metals expert Charles Kernot said gold could be poised for further gains if the US unit softened more, which would make dollar-denominated gold relatively cheaper.
Platinum prices climbed further away from recent 18-month low points as traders wondered whether the metal might have been oversold, but trade in palladium remained subdued.
By Friday, an ounce of platinum had risen to $458 from $452 a week earlier. Palladium was at $446 an ounce against $448.
Barclays Capital metals expert Howard Patten said platinum had been oversold, so the modest revival was not surprising.
Some base metals made a modest comeback in a technical bounce, but the outlook remained dim, experts said.
The market had been hoping that the flagging US economy might turn a corner leading to higher demand, Kernot said.
Aluminium, zinc and copper were marginally better while nickel, tin and lead weakened somewhat.
Oil prices recovered in thin trade after a heavy fall the week before last, with few new fundamental factors affecting prices.
By Friday afternoon, a barrel of Brent North Sea crude for October delivery was selling for $25,80 from $25,28 a week earlier.
Prices were supported by falling US crude and petrol levels. The US energy department said crude stocks fell by 4 million barrels and gasoline stocks by 2,5 million barrels in the week ended August 17.
busrep.co.za
---------------------------------------------------------
Daily Copper Chart
tfc-charts.w2d.com
Daily Gold Chart
tfc-charts.w2d.com
Daily Platinum Chart
tfc-charts.w2d.com
Daily Crude Chart
tfc-charts.w2d.com
Daily Natural Gas Chart
tfc-charts.w2d.com |
