Arab Today, arab today gold price slumps as china bites
Last Updated : GMT 18:57:34
Arab Today, arab today
Arab Today, arab today

Gold price slumps as China bites

Arab Today, arab today

Arab Today, arab today Gold price slumps as China bites

Gold
London - AFP

Gold prices hit multi-year low points this week, hit by a stronger dollar and weak Chinese demand.

With metals prices generally weak, mining groups Anglo American and Lonmin on Friday announced plans to cut their headcounts by up to a combined 12,000 staff.

PRECIOUS METALS: Gold slumped to the lowest point in nearly five and a half years, weighed down by the strong dollar and reports of massive selling in China, dealers said.

The metal struck $1,072.35 an ounce on Monday -- the lowest level since February 2010.

Sister metal silver hit a six-year trough at $14.37 an ounce and platinum reached the lowest level in more than six years to $946.25 an ounce.

"It can't be overestimated how much sentiment towards purchasing gold has been weakened following the stunning and sudden drop below $1,100 at the beginning of the week," said Jameel Ahmad, chief market analyst at trading group FXTM.

"There was already clear hesitation from buyers towards purchasing gold as the markets approach the timing of a US interest rate rise and such a sudden decline in the value of gold has further eliminated investors from even considering positions."

Gold had already slid the previous week on the back of the strong dollar, which soared last week after US Federal Reserve chief Janet Yellen reaffirmed expectations of an interest rate hike by year-end.

The precious metal failed also to benefit from its traditional status as a haven investment.

"The fact that the Greek debt crisis and the Chinese stock market rout failed to reignite a safe haven bid was what broke the camel's back," said Saxo Bank analyst Ole Hansen.

A stronger US currency meanwhile makes dollar-denominated commodities such as gold more expensive for buyers using weaker currencies. That tends to dent demand and pull prices lower.

By Friday on the London Bullion Market, the price of gold dropped to $1,080.80 an ounce from $1,132.80 a week earlier.

Silver fell to $14.49 an ounce from $15.01.

On the London Platinum and Palladium Market, platinum slipped to $979 an ounce from $998.

Palladium retreated to $616 an ounce from $655.

- Oil drop -

OIL: Prices slid on persistent concerns about abundant supplies in a slowing global economy.

New York crude finished below $49 a barrel on Thursday for the first time since March 31.

On Friday, Brent North Sea crude struck a near four-month low at $54.40.

The US Department of Energy on Wednesday said the country's commercial crude stockpiles rose 2.5 million barrels last week, while supplies at the closely watched Cushing, Oklahoma, hub were up 800,000 barrels.

The report also showed US production staying at near-record levels of about 9.6 million barrels per day, bad news for a market already awash with crude from the Organization of Petroleum Exporting Countries (OPEC).

"US inventories expanded more than expected...which exacerbated the oversupply problem, especially when Saudi is pumping at record production levels," said Bernard Aw, market strategist at IG Markets Singapore.

"OPEC produced 32.1 million barrels per day in June, with the largest increase coming from Iraq and Saudi Arabia. This was 2.1 million more than what the organisation said it will maintain," Aw added.

Dampening appetite also is the prospect of Iranian oil returning to the oversupplied market after Tehran recently reached a deal with major powers over its nuclear ambitions.

"A combination of plentiful supply and concerns about demand is putting prices under pressure," Commerzbank analysts said in a note to clients on Friday.

The Iranian deal will see world powers lift crippling economic sanctions, which have restricted Iran's oil exports, in return for toning down its atomic programme.

Iran has the fourth biggest proven oil reserves in the world.

Oil prices have plummeted from above $100 a barrel in June last year because of the supply glut brought about by strong production from the United States and OPEC led by Saudi Arabia.

By Friday on London's Intercontinental Exchange, Brent North Sea crude for delivery in September slid to $54.42 a barrel from $56.74 a week earlier.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for September stood at $48.01 a barrel compared with $50.34 a barrel for the expired August contract a week earlier.

- Copper recoils -

BASE METALS: Prices were hit by weak Chinese data, with copper striking a six-year low at $5,191.50 a tonne on Friday.

A key gauge of Chinese manufacturing activity tumbled to a 15-month low in July, an independent survey showed, throwing a pall over growth in the world's second-largest economy.

The preliminary reading of Caixin's Purchasing Manager's Index (PMI) came in at 48.2 this month, the Chinese media group said in a joint statement with Markit, a financial information services provider that compiled the survey.

The figure was the weakest reading since 48.1 in April 2014, according to Markit's data.

"Weak economic data from China are pressuring prices," said analysts at Commerzbank.

By Friday on the London Metal Exchange, copper for delivery in three months slid to $5,245 a tonne from $5,507 a week earlier.

Three-month aluminium decreased to $1,636.50 a tonne from $1,707.50.

Three-month lead fell to $1,714.50 a tonne from $1,835.

Three-month tin dropped to $14,910 a tonne from $15,675.

Three-month nickel retreated to $11,250 a tonne from $11,465.

Three-month zinc declined to $1,958.50 a tonne from $2,074.

- Cocoa slips back  -

COCOA: Prices hit one-month lows after reaching four-year peaks the previous week on tight output in Ghana.

"We suspect that the fall in Asia's cocoa grindings continues to reflect slower economic growth in the region, particularly in China, which is reducing the appetite for luxury products such as chocolate," Capital Economics said in a note to clients.

By Friday on LIFFE, London's futures exchange, cocoa for delivery in September fell to £2,140 a tonne from £2,216 a week earlier.

By Friday on the ICE Futures US exchange, cocoa for September decreased to $3,197 a tonne from $3,335 the previous week.

SUGAR: Prices extended losses.

By Friday on LIFFE, a tonne of white sugar for delivery in October dropped to $348.30 from $357.40 one week earlier.

On ICE Futures US, unrefined sugar for October fell to 11.38 US cents from 11.94 cents.

COFFEE: Prices hit an 18-month low at 120.85 US cents a pound in New York on currency factors.

By Friday on LIFFE, Robusta for September decreased to $1,651 a tonne from $1,674 one week earlier.

On ICE Futures US, Arabica for delivery in September slipped to 121.10 US cents a pound from 127.40 cents.

RUBBER: Prices fell as Malaysia's ringgit currency rose and as many investors took leave owing to the Muslim Eid festivities, traders said.

By Friday, the Malaysian Rubber Board's benchmark SMR20 dropped to 140.75 US cents a kilo from 144.65 US cents on Thursday of the previous week.

arabstoday
arabstoday

GMT 16:08 2017 Saturday ,14 October

US stocks rise on strong retail sales; Europe mixed

GMT 04:42 2017 Saturday ,14 October

Egyptian Bourse gains EGP 2.6 bn

GMT 04:32 2017 Saturday ,14 October

US stocks rise on strong retail sales; Europe mixed

GMT 20:52 2017 Thursday ,12 October

Egyptian Bourse loses EGP 3 bn

GMT 13:12 2017 Thursday ,12 October

Bahrain Bourse daily performance

GMT 11:06 2017 Thursday ,12 October

Wall Street ends at fresh records; Spanish stocks gain

GMT 21:13 2017 Wednesday ,11 October

Bahrain Bourse daily trading report (update)
Arab Today, arab today
Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold price slumps as china bites Arab Today, arab today gold price slumps as china bites

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gold price slumps as china bites Arab Today, arab today gold price slumps as china bites

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday