Will commodity prices be strong in 2008?
*Financial Times, by Chris Flood, January 2, 2008
“Gold’s advance leads way for oil and platinum
Commodity markets made a flying start to 2008 with gold, oil and platinum setting records during the first trading session of the new year.
Gold led the initial advance, rising 3.3 per cent to $861.10 a troy ounce, surpassing the previous high of $850 reached in January 1980. The metal later eased back to $858.10 in late London trading.
Traders said there was consistent selling pressure on gold in December as investors booked profits before the year-end, but that drag had cleared and Wednesday’s price rise indicated the strength of underlying sentiment.
Gold also found support from renewed dollar weakness after the influential ISM manufacturing survey indicated that industrial activity contracted in December, fuelling fears that the US economy could be dragged into recession as weakness in the housing market spreads into other sectors.
Gold’s strength spilled over into platinum, which rose 1.6 per cent to $1,544 a troy ounce.”
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