Gold surges

NEW YORK: Gold prices rose on Monday as losses in the US dollar bolstered, though gains were muted as financial markets bet that air strikes on Syria would not escalate into a wider conflict.

Prices have trended sideways since January, buoyed by geopolitical worries but capped by expectations for further US interest rate hikes and strong technical resistance at $1,360-$1,365 an ounce - their January, February and April highs.

Spot gold was up 0.10 percent at $1,346.31 per ounce by 2:49 p.m. EST, up 0.1 percent, as US gold futures for June delivery settled up 0.21 percent at $1,350.70 per ounce.

Forces from the United States, Britain and France targeted Syria with air strikes on Saturday, hitting what they said were three of its main chemical weapons facilities.

Gold prices reached a high of $1,350.52 on the back of the news, but struggled to maintain those gains amid expectations the attacks would not mark the start of greater Western involvement in the conflict.

“Some of the risk (premium) has come down following the air strikes,” Capital Economics analyst Simona Gambarini said. “Some market participants were thinking that maybe there could be an escalation of the tensions, but that has not happened and therefore prices have come down a bit.”

Bullion found support as the dollar sank against the euro.

“Syria, China trade tensions, and the dollar index falling off are all good reasons for gold prices to continue to rise,” said senior market strategist at RJO Futures in Chicago.

Speculators raised their net long positions in COMEX gold contracts by 363 contracts to 138,212 contracts in the week to April 10, US Commodity Futures Trading Commission (CFTC) data showed on Friday.

Silver was up 0.39 percent at $16.683 per ounce.

Palladium rose 1.54 percent at $1,002.22 an ounce, off highs of $1,012.10, the strongest since March 1. Platinum was 0.15 percent higher at $928.90.

Prices rose 9.6 percent last week, their biggest weekly gain in more than a year, as concerns that supply from number one producer Russia could be disrupted by US sanctions fed into a strong technical rebound following the metal’s 20 percent fall from its January record high.

The gyrations shot palladium’s premium above platinum above $76 an ounce, the strongest since January.

Platinum has historically been the higher-priced metal, but supply concerns have driven palladium to a rare premium in recent months.

Wheat drops

CHICAGO: US wheat futures fell to their lowest in 10 days on Monday, led by a 3.4 percent drop in K.C. hard red winter wheat prices, on forecasts for rain in key growing areas that will provide relief to a drought-stressed crop, traders said.

The drop in wheat also pulled corn futures lower, while soyabeans fell on a wave of profit-taking and technical selling after hitting their highest in more than a month on Friday.

Concerns about cold weather delaying planting in the United States kept the weakness in corn in check.

K.C. hard red winter wheat futures for May delivery dropped 17-3/4 cents to settle at $4.78 a bushel, just above its session low. Chicago Board of Trade May soft red winter wheat futures were down 10-1/4 cents at $4.62-1/4 a bushel.

Winter wheat has endured drought followed by late frost, and the cold start to spring has also raised question marks about whether farmers will plant extra spring wheat as projected by the US government.

MGEX spring wheat for May delivery was down 10-1/4 cents at $6.06-3/4 a bushel, notching its for its biggest daily percentage loss since March 29.

CBOT May corn futures ended down 3-3/4 cents at $3.82-1/2 a bushel. CBOT May soyabeans were 12-1/4 cents lower at $10.42 a bushel.

Drought-hit soyabean production in Argentina is expected to keep a floor under the oilseed market, but strong yield prospects in Paraguay and Brazil were limiting price support.

Traders shrugged off sings of strong domestic demand for soyabeans. US processors crushed 171.858 million bushels of soyabeans in March, the highest monthly total on record, according to a National Oilseed Processors Association report.—Reuters