Gold, Corn Rally

Ivaylo
22 Feb, 2007
New York City

Gold futures rallied to a seven-month high on Wednesday, after data showed consumer inflation rising at a faster-than-expected pace in January, boosting the appeal of gold as an inflation hedge. The outright refusal of Tehran to halt uranium enrichment and the pursuit of nuclear power also added fuel to the increase in gold. Other metals, like silver, platinum, palladium and copper also advanced. Corn spurted to ten-year high on speculative buying.

[R]5:00AM Gold surged on inflation concerns and Iran-related issues.[/R]
Gold for April delivery ended up $23 at $684 an ounce, its highest close since July 7, on the New York Mercantile Exchange. Other metals prices also advanced on Nymex. March silver futures gained 44.3 cents to $14.273 an ounce, April platinum surged $14.10 to $1,233.20 an ounce and March palladium was up $4.40 at $344.15 an ounce. March copper finished up 6.85 cents at $2.6545 a pound.

The front-month April crude oil contract closed up $1.22 at $60.07 a barrel after rising to $60.63. Front month March heating oil settled up 3.66 cents at $1.6816 a gallon. March gasoline gained 5.56 cents to end at $1.7047 a gallon and March natural gas settled up 6.1 cents at $7.646 a million British thermal units.

On the New York Board of Trade, March Arabica coffee futures ended up 1.95 cents at $1.1515 a pound, with May up 1.25 cents at $1.1645. March futures on raw sugar in foreign ports declined 0.08 cent to finish at 10.71 cents a pound, with May down 0.15 cent at 10.39 cents. Corn futures surged to 10-year highs Wednesday on the Chicago Board of Trade. March corn ended 11 cents higher at $4.2625 per bushel, May corn settled higher 10.75 cents higher at $4.39, and December finished 9.75 cents higher at $4.23.