Commodity Update – Gold Recovers; climbing soybeans; copper at 3-week high; China approves trade in soybean and soybean oil options
RIYADH: Gold rallied to a new multi-week high on Friday, with its safe haven appeal boosted as the dollar gave up initial gains after a further rise in US inflation, with the current price range also appearing to have attracted bids for precious metals.
Spot gold is currently priced at $1,765.94 per ounce, while US gold futures are set at $1,781.80.
Soybeans go up, wheat goes down
Chicago soybeans rallied on Friday and faced their biggest weekly gain in 22 years as forecasts of hot and dry weather in the U.S. Midwest raised supply concerns, while strong demand for soy flour provided additional support.
Corn posted its biggest weekly gain in nearly five months, while wheat ended the week higher after two weeks of decline.
The Chicago Board of Trade’s most active soybean contract, Sv1, rose 27 3/4 cents to $16.37 a bushel and is up 11.99 percent, its biggest weekly gain since July 23, 1999.
The CBOT’s most active corn rose 1 cent to $6.20 a bushel, marking its biggest weekly gain since March 4, while wheat fell 9-1/4 cents to $8.07-3/4 a bushel .
copper on
Copper prices hit their highest level in three weeks on Friday amid renewed supply concerns and after US Federal Reserve officials signaled slower rate hikes.
The metal, which is primarily used in power supplies and construction, has had a tight supply backdrop as inventories dwindle and miners cut production schedules.
Three-month copper on the London Metal Exchange rose 2 percent on Friday to $7,917.50 a tonne, the highest since July 8.
China approves trade in some soybean and soybean oil options
China’s securities regulator has approved some soybean and soybean oil options trading on the Dalian Commodity Exchange, it said on Friday.
Trading will begin on Aug. 8, China’s securities regulator said in a statement.
(With input from Reuters)
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