The Gold and oil prices forge historic heights, gold prices topped $1,000 for the first time and oil futures rocketed to a record high $111; dollar plunged to all-time lows against the euro

Gold prices topped $1,000 for the first time and oil futures rocketed to a record high $111 this week as the dollar plunged to all-time lows against the euro.

Investors dived into commodities as they sought a haven amid fears of a US recession and global economic slowdown. Investment in gold and oil is also seen as a hedge against future rises in inflation. Since the commodities are priced in dollars, a tumbling greenback makes gold and oil cheaper for buyers using stronger currencies, encouraging demand. The euro struck a record-high $1.5688 Friday after US investment giant Bear Stearns announced it was being baled out because of liquidity problems and following weak US consumer confidence data, traders said.

Oil: Oil prices enjoyed another record-breaking run this week as traders sought refuge from turbulent stock markets and the dollar’s downwards plunge. New York’s light sweet crude jumped to a record high 111 dollars per barrel on Thursday. London’s Brent oil hit an historic $108.02 Friday.

Oil has rocketed 90 percent over the past year as the market is driven by tight supplies, geopolitical concerns in key producer nations and strong demand from China and India. Prices have gained about nine percent in value since the start of 2008, accelerating after the OPEC crude exporters’ cartel held output at current levels last week. The Organisation of Petroleum Exporting Countries also on Friday left unchanged its estimate for growth in world oil demand this year. OPEC said while high prices and mild winter weather would brake demand in major industrialised countries, the market for crude would be strong elsewhere. By Friday, New York’s main oil futures contract, light sweet crude for delivery in April, was at $109.30, up from $105.42 a week earlier. Brent North Sea crude for April jumped to $106.59 from $105.42.

Gold: Gold prices soared to a record high $1,007.40 per ounce on Friday as the dollar slumped to record lows versus the euro. Gold has risen by about 17 percent so far this year, underscored also by supply problems in South Africa, the world’s largest producer. Gold has been on an upward trend since the start of January when the yellow metal jumped above $850 per ounce, smashing a 28-year-old record. Global demand for gold is also surging owing to increased jewellery purchases in China and India On the London Bullion Market, gold stood at $1,003.50 per ounce at Friday’s late fixing, up from $972.50 a week earlier. Silver jumped to $21.07 per ounce from $20.22.

Platinum: Platinum prices rose but failed to forge new heights a week after striking an historic peak of $2,301.50 per ounce. On the London Platinum and Palladium Market, platinum climbed to $2,107 per ounce at the late fixing Friday from $2,082 a week earlier. Palladium gained to $512 per ounce from $506.

Base metals: Tin reached a fresh historic high of $20,700 per tonne on supply disruptions and strong demand as the dollar weakened. By Friday, copper for delivery in three months eased to $8,490 per tonne on the London Metal Exchange from $8,495 a week earlier. Three-month aluminium fell to $3,156 per tonne from $3,198. Three-month nickel dropped to $32,850 per tonne from $33,175. Three-month lead rose to $3,101 per tonne from $3,090. Three-month zinc slid to $2,608 per tonne from $2,630. Three-month tin jumped $to 20,700 per tonne from $19,299.

Grains and soya: Wheat prices reached a record closing high of $12.82 per bushel Wednesday in Chicago on tight supplies and strong demand. By Friday on the Chicago Board of Trade, wheat for May delivery had risen to $11.73 per bushel from $11.05 the previous week. May-dated soyabean meal — used in animal feed — fell to $13.55 from $14.08. The price of maize for May delivery gained to $5.55 per bushel from $5.47 a week earlier. On LIFFE, London’s futures exchange, the price per tonne of wheat for November delivery rose to 160.50 pounds from 158.75 pounds a week earlier.

Sugar: Sugar prices gained. By Friday on LIFFE, the price per tonne of white sugar for May delivery advanced to 355 pounds from 349 pounds a week earlier. On NYBOT, the price of unrefined sugar for May delivery spiked to 13.34 US cents per pound from 13.25 cents.

Rubber: Malaysian rubber prices rose on strong demand and tight supplies due to heavy rains. On Friday, the Malaysian Rubber Board’s benchmark SMR20 gained to 268.45 US cents per kilo from 267.40 a week earlier. afp