Commodities make small gains in Asia on U.S. attacks<\/p>\n
Dow Jones, Singapore<\/p>\n
Most commodities, weighed by a supply glut and weak demand,
\nsaw some gains early Monday in Asia, following United States-
\nUnited Kingdom military attacks on Afghanistan late Sunday. Some
\nfell on news of the attack.<\/p>\n
Gold, base metals and rubber rose. Palm oil prices fell on
\nconcerns that consumption from India and Pakistan, among the
\nworld's largest buyers, will be crimped further.<\/p>\n
Spot gold rose US$2.50 to $293.25\/oz on the attack, but
\nanalysts are divided over the metal's direction in the medium
\nterm.<\/p>\n
An analyst at a major Sydney bank expects gold to break
\nthrough the $300\/oz barrier within the next few days. Technical
\ncharts indicate the price move wasn't a spike, but a reflection
\nof the upward trend in gold due to the protracted nature of
\nhostilities, said the analyst.<\/p>\n
\"Gold is a sentiment-driven metal and sentiment has well and
\ntruly changed,\" said the Sydney bank analyst.<\/p>\n
Gold was boosted Monday more by the dollar's weakness since
\nSept. 11, rather than by safe-haven buying, he added.<\/p>\n
At 0550 GMT (0.50 p.m Jakarta time), spot gold was trading at
\n$293.35\/oz, compared with its New York close Friday at
\n$290.75\/oz.<\/p>\n
Meanwhile, mining operations in Indonesia are unaffected thus
\nfar.<\/p>\n
PT. Freeport, a unit of U.S.-based Freeport Mc-Moran Copper &
\nGold Inc. said there is no security threat and that it is
\nbusiness as usual at its copper mines in Irian Jaya, Indonesia.<\/p>\n
Crude palm oil futures on the Malaysia Derivatives Exchange
\nfell 2.5 percent midday tracking lower soy oil values in Chicago
\nand on initial reaction to the U.S. attacks.<\/p>\n
U.S. attacks could raise fresh fears of shipping problems for
\npalm oil exporters, an MDEX trader said. Pakistan and northern
\nIndian ports are near the war zone.<\/p>\n
Early weakening of the Indonesian rupiah following U.S.
\nattacks on Afghanistan was also bearish for palm oil, another
\nMDEX trader says. Weaker rupiah makes Indonesian exports more
\ncompetitive.<\/p>\n
The MDEX December contract fell to 873 ringgit ($229.7) per
\nmetric ton down 22 ringgit from Friday's close at midday. Trading
\nvolume, however, was low at 433 lots as market awaits clearer
\nleads. One lot is 25 tons.<\/p>\n
Rubber futures prices on the Singapore Commodity Exchange
\nclosed higher midday Monday on short covering and a stronger U.S.
\ndollar against the rupiah, following the U.S. attack, traders
\nsaid. The Tokyo Commodity Exchange was closed Monday.<\/p>\n
But the rebound is expected to be short-lived as the weaker
\nrupiah is likely to weigh on TSR20 prices, said a Singapore-based
\ntrader.<\/p>\n
November RSS1 on Sicom is up 0.25 at 96.75 Singapore
\ncents\/kilogram (54 U.S. cents); November RSS3 and TSR20 are also
\nup 0.25 cents, at 53.25 U.S. cents\/kg and 49.0 U.S. cents
\nrespectively.<\/p>\n
Physical demand for rubber, meanwhile, is being monitored
\nclosely after the strike, said a trader in Singapore. It is too
\nearly to predict price direction and impact on demand, as the
\nattack just started overnight.<\/p>",
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