Gold and oil went differing ways last week, while wheat prices slumped to a near three month low in something of a surprise. Copper though, rose.
Gold grabbed the attention with another weak week – down almost 1.7% to a close of $US1230 an ounce in New York.
The stronger than expected November jobs report helped ruin gold’s day because it again reminded investors of the looming Fed meeting and possible decision on the central bank’s huge spending, which has been seen as big plus for gold.
That idea is plainly wrong, judging by gold’s 26% slide so far in 2013, while the Fed spending has been happening.
Also on Comex, March silver closed at $US19.52 an ounce, down almost 5c, or 0.2%, after the 1.3% drop on Thursday.
For the week, sliver futures prices dropped 2.6%.
But Comex March copper added 2c, or 0.6%, to $US3.25 a pound. It was up around 1.4% for the week.
Meanwhile New York oil futures ended the week with a gain of more than 5% thanks to a combination of a sharp rise in oil stocks, and then the November jobs report and its better than expected 203,000 new jobs for November.
January West Texas style crude settled at $US97.65 a barrel on the New York Mercantile Exchange, up 27c, or 0.3%, for the session. Prices for the week jumped 5.3% — the best performance since the week ended early July.
In contrast Brent crude in London had a much more sedate week – rising 1.8% overall after ending at $US111.61 a barrel on the ICE Futures market, for a weekly gain of 1.8%. If anything the rise in US prices helped pull Brent higher later in the week.
But wheat prices surprised with a fall to an 11 week low after Canada and Australia upgraded their current harvest forecasts.
Wheat production in Canada was forecast by the government at a record 37.5 million tonnes and Australia said its domestic output would reach 26.2 million tonnes, the third-highest on record, after the good rains of November.
As well, US officials reported that the prospects for the current US winter crop were the best in four years.
Big winter storms across the midwest in the past week will help add to ground cover and moisture levels.
Chicago Board of Trade wheat futures for December delivery dropped 0.1%, to $US6.3725 a bushel on Friday, the lowest closing price since mid September.
