Oil, gold prices retreat
Oil prices came under pressure this week from concerns about Greeces future in the eurozone and the possibility of higher Iranian crude supplies.
Gold failed to benefit from its status as a haven investment. US markets were shut Friday ahead of the July 4 Independence Day celebrations.
OIL: Prices slumped with focus on high US output as traders looked ahead to Greeces weekend referendum that could determine whether it remains in the eurozone.
Traders are worried about a global supply glut and the first rise in the US oil-rig count this year.
The US government meanwhile revealed a surprise weekly build of 2.4 million barrels for the countrys commercial crude inventories.
This was the first build in stockpiles since the end of April, ending a run of eight weekly declines, said Fawad Razaqzada, technical analyst at Forex.com.
Saxo Bank analyst Ole Hansen added Friday that the US situation combined with OPEC producing the most since 2012... leaves the upside potential for crude oil (prices) still very limited. There are concerns also over a return to the market of Iranian crude.
Talks between six world powers and Iran aimed at curbing the countrys nuclear ambitions were this week handed a deadline extension to July 7.
Iran rejects allegations that it has been seeking to develop nuclear arms, and has resisted moves to give the International Atomic Energy Agency unbridled access to sensitive military sites to verify its claims.
Successful outcome of the talks could see the lifting of sanctions that have forced the country to cut by half its oil exports.
The Greece situation has meanwhile weighed on the euro this week, making dollar-denominated crude more expensive for holders of the single currency.
By Friday on Londons Intercontinental Exchange, Brent North Sea crude for delivery in August slid to $60.39 a barrel from $63.25 a week earlier.
On the New York Mercantile Exchange, West Texas Intermediate (WTI) or light sweet crude for August retreated to $55.41 a barrel from $59.59 a barrel.
No gold rush
PRECIOUS METALS: Gold struggled to attract demand from investors.
In spite of the continual uncertainty over the situation in Greece, there remains no signs of increased appetite for gold, said Jameel Ahmad, chief market analyst at trading group FXTM.
You would normally expect demand for safe-haven assets to improve significantly when events such as the Greece crisis occur, but this has not happened. There is clearly hesitation from buyers to even consider purchasing gold as we approach the timing of a US interest rate rise and the outlook for gold remains weak. By Friday on the London Bullion Market, the price of gold eased to $1,167.95 an ounce from $1,170.50 a week earlier.
Silver dropped to $15.64 an ounce from $15.83. On the London Platinum and Palladium Market, platinum gained to $1,083 an ounce from $1,074. Palladium grew to $701 an ounce from $676.
BASE METALS: Nickel hit a six-year low point at $10,795 a tonne in a dramatic drop, before pulling back considerably. The weak Chinese equity markets are clearly preventing metal prices from making any noticeable recovery, said analysts at Commerzbank.
Capital Economics added: Weak demand from the stainless steel sector has been one factor in the price weakness of nickel. Growth in Chinas stainless steel output ground to a halt last year and producers drew down nickel inventories, they added in a note to clients.
Shanghai stocks plunged almost six percent Friday, capping their worst three weeks in 23 years as analysts warned panic was setting in and authorities pledged more support after recent moves to staunch the blood-letting failed.
By Friday on the London Metal Exchange, copper for delivery in three months rose to $5,803.50 a tonne from $5,758.50 a week earlier.
