The weaker US dollar and an easing in emerging markets tensions helped most commodities close with small gains, especially on Friday.
Gold prices rose nicely on Friday to score their first weekly advance in seven weeks as the US dollar fell after a speech from Federal Reserve Chairman Jerome Powell who said that gradual interest-rate rises by the Fed remain appropriate and there was no risk to the economy overheating.
He also said he was prepared to do “whatever it takes” if inflation becomes unanchored to the upside or downside “or should crisis threaten again.”
Traders took that to mean that the central bank will lift US rates again at its meeting at the end of September, and probably again in December.
That saw Comex December gold jump $US19.30, or 1.6%, to settle at $1US,213.30 an ounce— its highest finish in three weeks and largest one-day percentage climb since March, according to FactSet data.
Gold also saw a gain of about 2.5% for the week, after posting six weeks of losses in a row.
The US dollar index fell 0.5% on Friday in the wake of the fed chair’s speech to be down 0.9% over the week.
Comex September silver futures climbed 25.2 cents, or 1.7%, to $US14.794 an ounce after falling more than 1.4% on Thursday. It was up 1.1% for the week.
Comex copper for September delivery rose 4.6 cents, or 1.7%, to about $US2.701 a pound in New York on Friday to be up around 2.7% on the week.
In London LME copper futures rose on Friday and for the week (for the first time in four) thanks to the softer dollar.
Three months copper futures on the London Metal Exchange (LME) rose 2% to close at $US6,105 a tonne, up nearly 3% for its biggest weekly gain since early June when it hit a four and a half year high of $US7,348 a tonne.
The price of lead rose 1.5% to $US2,085, aluminium closed with a 1% gain at $US2,095 a tonne, zinc finished 2.7% up at $2,534, tin ended 0.5% lower at $US18,995 and nickel added 1.1% to $US13,415 a tonne.
Meanwhile the weaker dollar helped oil futures higher on Friday, with the US crude notching up its first weekly gain in about two months as investors focused on tightening inventories, including signs of falling output from Iran.
In New York West Texas Intermediate crude for October delivery added 89 cents, or 1.3%, to settle at $US68.72 a barrel – that was a gain of 5.4% for the week, based on the front month. It followed seven weeks in a row of lower closes.
In Europe October Brent crude futures rose $US1.09, or 1.5%, to $US75.82 a barrel. Brent rose 5.6% over the week, after three weeks of declines.
Estimates suggest that Iranian oil crude and condensate exports have dropped to 1.68 million barrels a day in the first 16 days of August, down over 600,000 barrels a day from loadings in July, according to an analysis from S&P Global Platts.
This compares with exports averaging 2.32 million barrels a day in July, S&P Global Platts said.
Meanwhile, data from Baker Hughes on Friday showed that the number of active U.S. rigs drilling for oil fell by 9 to 860 rigs. Baker Hughes said the total rig count (oil and gas) fell by 13 to 1,044. That’s still 104 higher than a year ago.
On Wednesday, the Energy Information Administration reported that domestic crude supplies fell by 5.8 million barrels for the week ended August 17. US crude production remains around 11 million barrels a day.
