Commodity prices should follow oil higher today in trading across Asia and Europe after the attack on key oil facilities in Saudi Arabia.
Watch oil prices first off, but keep an eye on gold, silver and iron ore.
Global iron ore prices surged 12% last week despite a rise in iron ore stocks in August and a surge in Chinese imports of the steelmaking material.
Seaborne iron ore prices were flat on Friday thanks to a market muted by the lack of demand because of the mid-Autumn public holiday in China.
The Metal Bulletin Fastmarkets iron ore index for 62% Fe fines was unchanged on Friday at Thursday’s close of $US99.30.
That was up more than $US10 a tonne over the week from the close the previous Friday of $US89.05 a tonne.
It’s quite likely the price of 62% fines will rise above $US100 a tonne in trading later today, especially with the likely surge in global oil and gas prices in the wake of the attacks in Saudi Arabia on Saturday.
Gold and silver will take a run today in the wake of an expected rise in tensions in the Middle East in the wake of the Saudi attacks.
That’s after Comex gold futures ended lower on Friday in New York.
December gold on Comex lost $US7.90, or 0.5%, to settle at $US1,499.50 an ounce, for a weekly loss of 1.1%.
Comex Silver for December delivery dropped 60.8 cents, or 3.3%, to $US17.569 an ounce—the lowest finish in three weeks, according to FactSet data. Silver saw a loss for the week of 3%.
Comex December copper added 5.9 cents, or 2.2%, to $US2.6995 a pound, with prices rising 2.5% over the week.
October platinum shed 40 cents, or 0.04%, to $US952.20 an ounce, for a fall of 0.7% for the week.
December palladium lost $US3.90, or 0.2%, to $US1,600.90 an ounce after settling Thursday at a record $US1,604.80.
Prices were up 3.6% for the week.
