The price of gold surged to an all-time high of $1,133.50 an ounce today, as strong Japanese economic growth data stimulated demand for the precious metal. Gold touched a fresh high in Europe on Monday as momentum from recent gains and a slide in the dollar index sparked fund buying of the precious metal.
Gold surged to the record level earlier this morning, before pulling back slightly at $1,131.70 in trading on the London Bullion Market. The world's second-biggest economy posted a second quarter of positive growth in a row as it emerged from a severe year-long recession on the back of rebounding exports and the government's massive stimulus spending.
Crude remained subdued as the dollar undermined due to Japan’s economy expanded at the fastest pace in more than two years, boosting confidence about the strength of the global recovery. Prices fell 1.4 percent last week as jobless claims in the world’s largest economy increased, fuel stockpiles rose and the nation’s refiners reduced operating rates to a 13-month low. Exxon Mobil Corp said Friday it restarted earlier this week a vacuum distillation unit at its 238,600 barrel-per-day refinery in Joliet,Illinois, after maintenance work.
Chile's Codelco, the world's top copper producer, has raised term premiums for refined copper to China by $10 per tonne to $85 per tonne for delivery in 2010, The premium means Chinese buyers pay sub-charges over the cash LME copper prices MCU0 for delivery to ports in China.
Chinese buyers had expected Codelco to raise 2010 premiums by $5-$10 a tonne after a fall this year, but several copper buyers to said Codelco's decision to shoot for the top end of that range might prompt them to find alternative suppliers. China, the world's top copper consumer and the biggest buyer from Codelco, won a 32 percent cut to $75 in 2009 from the previous year.
Courtesy: Religare Commodities
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