Commodities Update – Gold Recovers to 4-Week High; Soybeans near one-week minimum; Industrial metal prices fall
RIYADH: Gold prices hit a four-week high on Tuesday and extended their winning streak to a fifth session, as a drop in the US dollar and Treasury yields boosted demand for the metal in a amid heightened concerns about a global economic slowdown.
Spot gold rose 0.2% to $1,774.38 an ounce by 0402 GMT after hitting its highest level since July 5 at $1,780.39 earlier in the session.
US gold futures gained 0.2% to $1,790.80 an ounce.
Spot silver fell 0.6% to $20.22 an ounce, while platinum rose 0.2% to $907.98.
Palladium rose 0.3% to $2,199.67.
Chicago soybean futures lost more ground on Tuesday as prices fell to their lowest level in nearly a week after a US government report showed a slight improvement in crop conditions. .
Wheat and maize fell more than 1% as Ukraine resumed maritime grain exports, raising hopes of an increase in global supplies.
The most active soybean contract on the Chicago Board of Trade was down 0.5% at $13.99 a bushel as of 0325 GMT, with the market trading near its lowest level since July 27.
Wheat fell 1.5% to $7.88-1/2 a bushel and corn fell 1.1% to $6.03-1/4 a bushel.
Industrial metal prices down
Industrial metal prices fell on Tuesday as traders and investors sold risky assets amid escalating US-China tensions following news that a top US politician was to visit Taiwan, a self-governing island claimed by Beijing.
U.S. House of Representatives Speaker Nancy Pelosi was due to arrive in Taiwan later in the day as several Chinese fighter jets flew near the center line dividing the Taiwan Strait, sources said.
Three-month copper on the London Metal Exchange fell 1.3% to $7,718.50 a tonne at 0406 GMT, and September’s most-traded copper contract on the Shanghai Futures Exchange fell 2% to $8,783.25 per ton.
LME tin fell 2.6% to $24,250 a ton, lead 0.4% to $2,045 a ton, zinc 0.4% to $3,315 a ton, while aluminum fell 0.3% to $2,424 a tonne.
Shareholder support for Yamana takeover continues to grow: Gold Fields CEO
Gold Fields CEO Chris Griffith said on Tuesday that convincing the company’s shareholders to back its takeover bid for Canada’s Yamana Gold was still a “work in progress”.
The South African-listed miner, with assets in Australia, Africa and South America, announced plans in May to acquire Yamana in an equity deal valuing the Canadian-listed miner at 6, $7 billion on May 31.
“We are trying to make them see the huge advantage that exists in this agreement. So the work in progress is probably the best way to describe it,” he said when asked if investors and shareholders agreed with the deal.
Gold Fields shareholders will vote on the deal during the second week of October.
Griffith said the company has held a few roadshows in recent weeks to “educate” shareholders.
(Contributed by Reuters)