Commodities ticked over last week as oil rebounded strongly, gold finished a smidge higher and zinc, copper and lead saw solid gains.
Iron ore rose for a second week in a row for no reason, but it is not a boom, China is stuffed to the gills with the stuff.
Despite some strong session during the week, the US dollar ended a touch lower, which saw the Aussie dollar bounce towards 72 US cents by Friday.
Friday’s US consumer price inflation data again confirmed that cost pressures remain very strong, although there were signs of a slight easing in upward pressures.
The US Consumer Price Index rose 0.8% last month after October’s 0.9% jump. That produced an annual rate of 6.8%, a 40 year high.
The 4.9% annual gain in core inflation was the largest rise since June 1991, after rising 4.6% in October.
Oil jumped by 7% to 8% over the week thanks to the loss of fears about Covid omicron’s dangers.
US West Texas Intermediate saw a rise of 8.6% to settle at $US71.67 on Friday. That was also a gain of 1% on the day.
Brent futures settled around $US75.15 a barrel for a gain of 7.3% for the week.
Rig use numbers rose for the first time in three weeks – oil directed rig numbers added 4 to 471 by Friday, according to Baker Hughes, the US oil services group. That was part of a rise of 7 in the total number of rigs at work last week to 576.
Comex gold settled at $US1,784.80, up 0.5% on the day and that enabled the metal to close with a small 0.1% gain for the week.
Comex silver though sold down, losing 1.3% over the week at Friday’s settlement of $US22.16 an ounce. Silver at one stage though fell through the $US22 an ounce level.
Comex copper though rose 0.4% to settle at $US4.283 a pound after data on Tuesday showed Chinese imports of the metal rising for a third month in a row in November.
In London copper and nickel stabilised at $US9,580 and $US20,000 a tonne respectively, while lead, zinc and tin saw solid gains for the week.
LME three month zinc closed at $US3,328.50 a tonne, up 0.6% from Thursday and more than 5% over the week.
Iron ore prices rose for a second straight week – taking the total gain for the key 62% Fe fines marker from the Pilbara to more than 10% or over $US10 a tonne.
MBFastmarkets data showed 62% Fe fines ending at $US108.03 a tonne, up 50 cents a tonne on Friday but more than $US5.60 for the week.
That was after a gain of $US5.69 a tonne for 62% Fe fines the week before.
