INTERNATIONAL COMMODITIES MARKET UPDATE Jan 07th – 11th 2007

Crude Oil:At the beginning of the week, oil prices fell on increased concerns about a slow in the US economy, increased geopolitical tension between Iran and the US and unseasonably warm weather that diminished oil demand. US light crude shed $2.70 to settle at $95.21 a barrel, but rebounded slightly on the second day of trade to settle $1.24 higher at $96.33 a barrel. Oil prices dipped mid-week on profit-taking and shed a further 2% on Thursday on increased concerns about a global economic slowdown which could weaken demand for energy and petroleum products. US light crude lost $1.96 to settle at $93.71 a barrel while London Brent crude lost $2.15 to settle at $92.22 a barrel. At the close of the week, oil lost a further $1.26 to settle at a session low of $92.45 a barrel.

Gold: Gold prices opened the week on a weak note on increased investor concern about a possible recession in the US, and lost $4.10 to settle at $857 an ounce on Monday. On Tuesday, however, gold soared to a record high above $880 an ounce, with spot gold reaching $881.10 on increased fund-buying, as analysts predicted a further rise in the price as gold received support from a broadly weaker dollar and firm oil. Gold prices however dipped mid-week on profit-taking but rebounded on Thursday, soaring to a new record high close to $900 an ounce, on increased fund-buying after comments from the Fed chairman Ben Bernanke triggered speculation of a further cut in US interest rates. Spot gold hit a record high of $894.90 an ounce before settling lower at $889.90/890.60 an ounce while most-active February gold gained $11.90 to settle at $893.60 an ounce. At the close of the week, gold hit the key $900 an ounce mark in a fourth straight record-breaking session on the back of a broadly weaker dollar and increased expectations of a Fed rate cut. Most-active February gold hit $90.10 an ounce before closing the week trading at $897.70 an ounce.