COMMODITIES

Gold drifted higher on Thursday on bargain hunting after a three-month low the previous day, but analysts said the metal had potential to test fresh lows.

Base metals were boosted on Wednesday as equity markets headed higher, with copper rising 1.6 percent, but analysts said the sentiment remained vulnerable.

Oil prices slipped below $69 a barrel on Wednesday, supported by perceptions that supply and demand for oil is still finely balanced but pressured by expectations of a rise in U.S. gasoline supplies.

The U.S. energy industry has sharply reduced its production of heating oil in favor of cleaner, higher-profit fuels like diesel -- a move that could see the nation relying more heavily on imports next winter heating season, analysts said Wednesday.

Government bond prices rose on Wednesday on shortcovering, reversing brief losses tied to surprisingly strong data that fanned worries the Federal Reserve may raise interest rates to curb inflation.

Oil and industrial metals prices extended the week's sharp falls on Wednesday on fears that rising interest rates will dent demand from investors and consumers.

Gold fell to a three-month low on Wednesday when the dollar extended its ascent against major currencies as markets dropped expectations of lower U.S. interest rates later in the year.

Oil prices dropped below $66 a barrel Tuesday amid expectations that gasoline supplies rose for the sixth straight week, easing worries of a crunch during the summer vacation season.

Gold fell nearly one percent on Tuesday to trade near last week's three-month low, with a firmer dollar and a decline in oil putting pressure on the metal.

China’s central bank has agreed in principle to allow foreign members into the Shanghai Gold Exchange, marking an opening in China’s precious metals trading market, according to the state news agency.

Saudi Arabia's Oil Minister said Tuesday that OPEC had curbed much of the world's surplus oil supplies through already agreed to output cuts, sending crude futures down and some industrial stocks in the U.S up.

Nigeria, the world's eighth biggest oil exporter, is trimming supplies from October 1 after discussions with fellow OPEC members on how to stem a price fall, a senior Nigerian oil industry source said on Thursday.

The OPEC crude basket price, a daily reference level based on the prices of 11 crudes - dropped to $55.99 on Thursday from $56.23 the previous day.

The yen rallied sharply from two-week lows against the euro on Tuesday after a European official said markets may need time to digest policymakers' message that a stronger yen versus the euro is desirable.

Oil hovered around $63 a barrel on Friday, near its lowest levels since March, as ample U.S. fuel stocks looked set to meet winter heating demand in the world's biggest consumer.

Diamonds produced in a laboratory - cheaper and in a myriad of colours - should not be seen as a threat by industry giant De Beers since they will largely fill a separate niche, a group promoting the gems said.

Rising oil prices lifted European energy stocks on Friday while most financial markets were focused on an upcoming speech by U.S. Federal Reserve Chairman Ben Bernanke.

David Olson peers at a 16-acre plot of tobacco on his southern Wisconsin farm and sees a healthy crop ready for harvest in a few weeks. He also sees an opportunity.

The silver market is raising its profile via an exchange-traded fund (ETF) set up four months ago, and some analysts say silver prices may rise faster than gold in the long term.

The profit-oriented market economy is seen working against Beijing's plan to reduce aluminum capacity in China.

China is all but certain to raise retail gasoline and diesel prices for a third time this year, but will not jack up rates by the more than 15 percent that would be necessary to close the gap with rallying crude costs.

High and volatile prices will continue to scare physical gold buyers in most parts of the world, but some markets such as China and Japan will remain strong, bullion dealers said.

Crude oil futures rose to record highs on Thursday, hitting European stocks and the dollar, with worries over rising tensions in the Middle East and North Korea affecting sentiment across the board.

Big investors buying into baskets of commodities saw lower returns in the first half of this year, compared with a year ago, as oil generated slimmer gains and the search intensified for new strategies.

U.S. gold hit new 25-year highs on Tuesday on aggressive buying by investment funds, while oil soared as a letter from Iran's president to U.S. President George W. Bush failed to defuse tensions over Iran's nuclear program.

Raw material resources will determine country rankings in the world economic pecking order in years to come as strong demand and limited supplies ensure commodity prices hold their upward trajectory.

World sugar prices are likely to defy gravity in the next 12 months as key producing countries churn out ethanol as an alternative fuel after oil prices spiked to stratospheric highs.

U.S. stock futures fell Thursday as China's central bank lifted interest rates and on caution ahead of testimony from the chairman of the Federal Reserve.

Oil fell below $72 on Thursday, deepening losses from the previous session, as worries over U.S. gasoline supplies eased slightly ahead of the summer driving season.