Bullion’s record run lifts other metals

Gold’s record-breaking run saw bullion breach the $1,150 level this week, helping silver, platinum, palladium and copper reach fresh 2009 highs as investors continued to pour money into commodities.

Barclays Capital said total inflows into commodities this year were approaching $55bn, a record, above the previous peak of $51bn in 2006. BarCap said a more nuanced view of supply and demand fundamentals was returning and that total commodity assets under management would end the year between $230bn and $240bn.

Gold traded at $1,142 a troy ounce on Friday, up 2.1 per cent this week after hitting a record $1,152.74 on Wednesday.

Chinese consumers’ demand for gold reached a record 120.2 tonnes in the third quarter, up 12 per cent on the same period last year as the 60th anniversary of the founding of the People’s Republic of China boosted jewellery sales, the World Gold Council said.

However, China was the sole market to see positive growth in gold jewellery demand with large year-on-year declines recorded in India and the Middle East.

Crude oil prices briefly passed $80 a barrel on Wednesday but nagging concerns about US demand weakness weighed on sentiment.

Nymex December West Texas Intermediate fell 74 cents on Friday to $76.72 a barrel, up 0.5 per cent this week. The December contract expired at the close on Friday. January WTI, the benchmark from Monday, slipped 58 cents to $77.47. ICE January Brent lost 44 cents to $77.20 a barrel on Friday, up 1.2 per cent this week.

Freight costs staged a modest correction on Friday with the Baltic Dry index dropping 3.3 per cent to 4,507 points after rising for the previous 16 sessions.

The global benchmark for freight costs for dry bulk commodities rose 9.6 per cent over the week after hitting a 2009 high at 4,991 on Thursday.

Copper rose 5 per cent to $6,845 a tonne over the week after hitting a 2009 high at $6,985 on Wednesday amid concerns about strikes affecting Latin American production.