Gold rose Friday, oil fell, copper was weak – in fact it was a repeat of the last few weeks for commodities.
And there’s more gloom from China with weak exports in July raising more questions about the health of the economy, even though imports of key commodities rose last month as buyers took advantage of weaker prices.
Chinese imports of oil, coal, iron ore and soybeans all jumped, but copper remains flat (because of the usual summer shutdown in Chinese manufacturing sectors).
Oil prices led the way lower on Friday and over the week. A rise of six (to 670) in the number of rigs drilling for oil last week (according to Baker Hughes, the oil services group) didn’t help sentiment, nor did the 215,000 new jobs for July (and a steady jobless rate at 5.3%).
So global oil prices tumbled for a sixth week of losses.
US crude futures fell 1.8% in New York on Friday night, ending at $US43.87, bringing the week’s loss to 6.9% and the lowest settlement for nearly five months.
Continuing oversupply in OPEC, fears about Iranian oil exports rising, US oil stocks about 100 million barrels above the five-year seasonal average and rising crude output in America’s shale regions (it jumped the highest in two months last week when earlier forecasts had it falling) are fall factors pressuring oil prices lower.
The rising US dollar is adding pressures of its own and after Friday’s jobs report, most economists now expect the US Federal Reserve to raise oil prices at next month’s two-day meeting.
The 2% slide on Friday for West Texas Intermediate crude for September delivery to close at $US43.87 a barrel was the lowest settlement since March 17,and the second-lowest of the year so far.
In London, Brent for September settlement lost 91 cents, or 1.8%, to end at $US48.61 a barrel. That’s the lowest close since January 28. Brent also fell 6.9% last week, the biggest weekly drop since since March.
Gold prices rose Friday, after initially easing off the back of the US jobs report for July, but all the gain managed was to trim the week’s losses to 0.1%.
December Comex gold futures in New York fell to around $US1,081.40 an ounce but then jumped to a high of $US1,098.90 an ounce.
At the close December gold settled up $US4, or 0.4%, to $US1,094.10 an ounce. But it slipped slightly in after hours trading.
For a second week, Comex silver did better than gold.
The metal ended Friday in New York at $US14.821 an ounce, up almost 0.5% over the week and the second consecutive week silver has ended in positive territory.
