Commodity prices give up some of this week’s gains
NEW YORK — Commodities broke their winning streak Friday and retreated, as investors worried that prices might have shot up too fast.
A recovering dollar also gave traders a reason to reconsider pouring money into commodities, which are often used to hedge against a weakening U.S. currency.
After several weeks of robust gains, this week was another strong one for many commodities. Crude oil, even after Friday’s pullback, was up 5.3 percent for the week. Gasoline was up 4.4 percent since last Friday, while copper was up 4 percent.
But analysts say a retrenchment might be in store — particularly in industrial metals, most of which are trading at their highest levels of the year.
“Some metals look increasingly overextended and are vulnerable to a sharp pull back,” wrote James Crandall, a Barclays commodities analyst, in a research note Friday.
A retreat would likely be brief because of increasing investor interest and consumer activity, he added. But he pointed out that recent production data out of China, a major driver of global demand, “painted a very mixed picture” for metals.
Meanwhile, the dollar finished an overall anemic week with a gain on Friday. The 16-nation euro fell to $1.4010 in late trading Friday from $1.4126 late Thursday, while the British pound fell to $1.6450 from $1.6589.
July copper fell 7.15 cents to $2.3735 a pound on the New York Mercantile Exchange, and aluminum fell.
Energy prices, like base metals, have also been on a tear as well on speculation that the economy will recover, but reversed course on Friday.
Crude oil ended a three-day rally and closed lower on the Nymex. Light, sweet crude for July delivery fell 64 cents to settle at $72.04 a barrel, after settling at an eight-month high on Thursday.
In other Nymex trading, gasoline futures July delivery fell 2.18 cents to settle at $2.0431 a gallon and heating oil dropped 1.59 cents to settle at $1.8375. Natural gas for July delivery slid 7.6 cents to settle at $3.857 per 1,000 cubic feet.
Precious metals fell Friday, too, leaving them lower for the week. Gold for August delivery fell $21.30 to settle at $940.70 an ounce, and July silver fell 61.8 cents to $14.875 an ounce. Platinum and palladium declined.
Grain prices followed other commodities lower on the Chicago Board of Trade.
July soybeans broke a four-day climb and fell 21.5 cents to $12.455 a bushel. Soybeans hit a new high for 2009 on Thursday, having jumped nearly 30 percent since the year started. Falling supply and higher Chinese demand have been lifting soybean prices.
July wheat fell 10 cents to $5.8475 a bushel, and July corn fell 15.5 cents to $4.255 a bushel.
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