Commodities ended the week mixed as industrial metals, agricultural products and iron ore rose while gold’s 15 percent rally this year started to fade.
Iron ore, a key steelmaking ingredient, had its best weekly move since last April as steel mills restocked inventories, the Financial Times reported.
Benchmark 62 percent ore for immediate delivery into China rose $3.8, or eight percent, to $47.00 a ton, according to the Steel Index, a price reporting agency.
Aluminium rose three percent for the week to trade at $1,547 a ton on the London Metal Exchange, while zinc, a metal used to galvanize steel, was up 1.7 percent to $1,728 a ton.
Investors have pushed the zinc price up on bets that more mined supply will start to shut on the back of low prices.
Net long positions on the LME rose to their highest level since mid-June last week, according to Commerzbank.
Gold, however, ended the week down at $1,230 a troy ounce, a drop of 0.6 percent over the five trading days, as investors took profits from a rally that has driven the price up 15 percent this year.
The precious metal has benefited from haven demand among investors amid negative central bank interest rates.
While gold-backed exchange traded funds have seen strong inflows so far this year, Asian physical demand has failed to materialize.
“The floor price for gold has probably risen and the bear is back in hibernation but it is way too soon to be talking about a new bull market,” said Tom Kendall, a precious metals analyst at ICBC Standard Bank in London.
Oil had a volatile week as traders tussled with conflicting signs from some of the biggest producers in OPEC and Russia, the largest crude producer outside the group.
Saudi Arabia agreed a provisional production freeze with Russia a sign the near 70 percent price slide of the past 18 months could finally provoke a co-ordinated response.
Iran and Iraq both offered verbal support to co-ordinated action but stopped short of agreeing to freeze their own output.
Iran is raising production after the removal of western sanctions on its oil industry while Iraq’s output has risen over the past year as postwar investment in the sector starts to come to fruition.
Brent crude oil, the international benchmark, hit a two-week high of $34.46 a barrel on Thursday but fell four percent on Friday to finish roughly flat on the week near $33 a barrel.
Weather and logistical concerns also supported agricultural commodities, with wheat adding one percent on the week on warmer than normal weather in the US and corn and soyabeans firming on the back of shipment delays at Brazilian ports.
ْSource:Irandaily













